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On 1 july 2019 proper plant ltd acquired an automated botitng plant from an oversas supplier to assist in manufacturing an innovative new health drink.the purchase coast were $500000.ijmport duties and taxes $70000 transportation expenses were $5000 and the installation coast were $25000 the transportation and installationcoast were paid on recept of the machine aan arrangement with the supplier was reached to pay the remaing balance within 120 dayes of receiving the machine the company incurred coast of $5000 for routiong maintannce and servicing of the plant within 90 days of operation the fair value of the plant (incuding installation )was $650000.
Problem 1: Calculate the initial purchase prise of the property plant and equipment (automated botting plant) and show your working (including refrences to the accounting standerds)
Problem 2: Prepare genral entries to record the initial purchases of property palmnt and equoipment using Cost model
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