Refer to Exercise 1 of Usha Corporation Ltd. The company had intended to keep the shares as current investments. However, looking at the long-term prospects of Bhonsle, it now wants to reclassify them as long-term investments. At what amount will it make the transfer to long-term investments in the following two situations:
1. The quoted price as on that date is Rs. 535 per share and brokerage of 0.50% is payable to the broker.
2. The quoted price as on that date is Rs. 505 per share and brokerage of 0.50% is payable to the broker.

Exercise 1

Usha Corporation Ltd. sought the advice of an investment advisor for deployment of surplus funds of around Rs. 45 lakh in the stock market. The advisor advised to invest in Bhonsle India Ltd. and charged Rs. 7,500 as his fee. Accordingly, UCL bought 8,500 equity shares of the face value of Rs. 10 each of Bhonsle @ Rs. 520 per share from NSE through a stockbroker, UTI Securities Ltd.
The broker charged a brokerage of 0.50%. Determine the cost of this investment.