Reference no: EM132911145

Prosperous Company is a public company operating in Saskatchewan. The following costs pertain to machinery that Prosperous Company purchased during its fiscal year ended June 30, 2021:

Cash paid for machine, including recoverable GST of $15,250               $320,250
Foreign exchange paid on machine                                                   16,312
Insurance premium paid on the machine for its first year of operations    3,128
Cost for calibrators to test machine in preparation for first time use       1,622
Cost of training staff to use the new machine                                    5,599
Freight and insurance cost while in transit                                         3,873
Cost of installing machine                                                                3,159
Interest paid on a 3-month loan used to finance the purchase of the machine 3,108

It took Prosperous Company approximately 2 months to purchase and receive the machine, and ready it for use.

Required:

Problem 1: Calculate the cost of the machine for Prosperous Company.