Higher Ltd. purchased a large piece of earth-moving equipment for $5,000,000. The vehicle had six tires, each worth $100,000 and expected to last two years. This is the maximum value that should be allocated to tires. The reminder of the purchase cost, including incremental costs, was attributable 40% to the vehicle body, expected to last 6 years and 60% to the engine, expected to last 4 years. Other costs associated with the machine:

HST, 15% of $5,000,000 cost ...................................................................    $750,000

Delivery ......................................................................................................        12,200

Repair of incidental damage done during delivery .............................           5,000

Servicing and tune-up to get the machine ready to use .....................        14,000

Required:

Prepare the journal entry to record the equipment and the associated expenditures. Record all items on the list plus the $5,000,000 invoice price.