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Betty Ltd purchased specialised machinery in its factory. The cost of the machinery was £750,000. The installation costs were £65,000 and the employees received training on how to use the machinery, at a total cost of £10,000. The machinery had to be tested before being put into use, which entailed having to use some material which were later discarded of which cost £750.
Problem 1: What is the cost of the machinery to be recognised in the company's statement of financial position?
Option A. £750,000
Option B. £815,000
Option C. £815,750
Option D. £825,750
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