Answer to Question #246935 in Economics for TINA

Question

Purchase price of equipment 400000

Cost of transport and installation of equipment 70000

Fine paid for illegal transport of equipment 10000

Using the information for Ngidi’s Clothing Manufacturers supplied in 1.1.2 above,

determine which one of the following amounts represents the total capitalised cost of

the asset, equipment. (2)

A) R400 000

B) R470 000

C) R480 000

D) R460 000

Answer 1

C) R480 000

The total capitalised cost ofthe asset equals to 400000 + 70000 + 10000 = 480 000