A company decides to replace one of its production lines with new machin- ery. All the costs associated with the exercise are grouped together by the accountant in the same account, pending later analysis. The items appearing in the account after three months are:
|
|
€
|
|
Removal of old machinery
|
2 800
|
|
Installation of new power lines
|
350
|
|
Resurfacing factory floor
|
825
|
|
Purchase of new machines
|
62 100
|
|
Transport of machines to factory
|
3 200
|
|
Hire of crane to position new machines
|
450
|
|
Servicing after first month's production
|
375
|
|
Replacement of conveyor damaged in production
|
580
|
|
Engineer's fee to check installation
|
250
|
In addition to the above items, the payroll records show that the company's maintenance crew spent 300 hours on installing the machines. The usual charge-out for labour is €5.75 per hour.
Which of the above items should be part of the asset value of the new machinery?