On 31 July 2009, an entity which prepares financial statements to 31 March each year bought a machine for EUR 1,269,000. This amount was made up as follows: 

The entity is VAT-registered and reclaims VAT charged to it by its suppliers. Calculate the cost of the machine in accordance with the requirements of IAS 16.

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Manufacturer's list price Less: Trade discount Delivery charge Installation and testing charges Minor spare parts Servicing contract for the year ended 31 July, 2010 Value added tax at 17.5% 1,000,000 60,000 940,000 8,600 49,000 10,400 72,000 1,080,000 189,000 1,269,000