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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?
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