Question - Goldmine Limited purchases a second-hand fire engine for use in its mining operations.
Costs incurred were:
Cost ex Auckland dealer $25,000
Delivery charges $1,000
Reconditioning of engine $2,000
Registration (one-off) $800
Repaint before use $400
Diesel $150
Annual registration $250
At what value should this fire engine initially be recorded in Goldmine Limited's financial statements?
a. $25,000
b. $29,200
c. $26,800
d. $29,600
e. $29,450