Magpie Ltd uses many kinds of machines in its operations. It constructs some of these machines itself and acquires others from the manufacturers. The following information relates to two machines that it has recorded in the 2023-24 period. Machine A was acquired, and Machine B was constructed by Magpie Ltd itself.

Required 

Determine the amount at which each of these machines should be recorded in the records of Magpie Ltd. For items not included in the cost of the machines, note how they should be accounted for.

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Machine A Cash paid for equipment, including GST of $4000 $ 44 000 Costs of transporting machine-insurance and transport Labour costs of installation by expert fitter 1 500 Labour costs of testing equipment 2 500 2 000 Insurance costs for 2023-24 750 Costs of training for personnel who will use the machine 1 250 Costs of safety rails and platforms surrounding machine 3.000 Costs of water devices to keep machine cool 4 000 Costs of adjustments to machine during 2023-24 to make it operate more efficiently 3 750 Machine B Cost of material to construct machine, including GST of $3500 38 500 Labour costs to construct machine 21 500 Allocated overhead costs-electricity, factory space etc. 11 000 Allocated interest costs of financing machine 5 000 Costs of installation 6.000 Insurance for 2023-24 Profit saved by self-construction Safety inspection costs prior to use 1.000 7 500 2 000