Reference no: EM132931891

Question - Pearl Confectionery Ltd. (PCL) took delivery of an Ice Cream Processing Machine on 30 July 20X6, the beginning of its financial year. The list price of the equipment was Rs. 490,000 but PCL was able to negotiate a price of Rs. 400,000 with the supplier. However, the supplier charged an additional Rs. 30,000 to install and test the equipment. The supplier offered a 2% discount if PCL paid for the equipment and the additional installation costs within seven days. PCL was able to take advantage of this additional discount. The installation of special electrical wiring for the computer cost Rs. 11,000. After initial testing certain modifications costing Rs. 19,000 proved necessary. Staff were sent on special training courses to operate the microcomputer and this cost Rs. 9000. PCL insured the machine against fire and theft at a cost of Rs. 4900 per annum. A maintenance agreement was entered into with Sona Ltd. (SL). Under this agreement SL Promised to provide 24 hours breakdown cover for one year. The cost of the maintenance agreement was Rs. 35000.

Required - Calculate the acquisition cost of the Ice Cream Processing Machine to PCL.