Question 2 BC
Cost of purchase = 990 + 10 = 1000
Travel expenses are not included in the recorded value of fixed assets.
VAT is deductible and not included in the cost.
Installation cost 20 is attributed to equipment A and is not prorated.
Equipment A = 1000*612/(612+408) + 20 = 620
Equipment B = 1000*408/(612+408) = 400