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W Co, a sales tax registered trader, bought a new printing machine. The cost of the machine was
$80,000, excluding sales tax at 17.5%. The delivery costs were $2,000 and installation costs were
$5,000. Before using the machine to print customers’ orders, a test was undertaken and the paper and
ink cost $1,000.
What should be the cost of the machine in the company’s statement of financial position?
————shouldn’t the cost of machinery include sales tax as well since the business itself is the final consumer?
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