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Question - NZ Company purchased some equipment on 1 June 2019. The purchase price was $500,000. NZ Company financed the purchase price with a two-year bank loan at 8% interest. In addition, NZ Company paid $25,000 import duty, $20,000 to have the equipment shipped to its factory and $10,000 to have the equipment assembled and tested. Finally, NZ Company paid $55,000 GST associated with the equipment, which the government would refund. NZ Company began using the equipment on 1 July 2019. How much should NZ Company recognise as the cost of the equipment on 1 July 2019?
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