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Busi Ngidi is the sole proprietor of Ngidià ¢ s Clothing Manufacturers which was renting property in an industrial park. To expand her operations, Ngidià ¢ s purchased its own property, demolish the old building, construct a new building and install new equipment. The following costs were made available Ignore VAT implications: (2) Equipment R Purchase price of equipment Cost of transport and installation of equipment Fine paid for illegal transport of equipment 400 000 70 000 10 00 Property R Purchase price of property Legal and transfer fees Cost of demolishing old building Proceeds from sale of old building material Architectà ¢ s and engineersà ¢ fees Cost of construction of new building 840 000 21 000 30 000 9 000 16 000 502 000 Determine which one of the following amounts represents the total capitalised cost of the asset, property. A) R1 400 000 B) R1 363 000 C) R1 418 000 D) R1 379 000
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