Reference no: EM133113152

Question - Zee Pvt. Ltd is a manufacturer of electronic appliances. The company's management has decided to convert its production process on the solar technology as to make it more energy efficient. This new technology is believed to reduce significantly the manufacturing costs. The related cost data is here as under:

Rs.

Cost of new equipment 2,700,000

Trade discount received from the vendor 100,000

Staff training cost 50,000

Initial testing Cost 80,000

Loss of parts during testing and training 110,000

Tax paid by the XYZ Pvt. Ltd 75,000

Marketing costs 90,000

Required - Compute the costs of the new equipment eligible to capitalize?