A second-hand machine which had cost 20,000 was sold at 12,000. When the deal was finalised, the actual invoiced amount was 15,000 consisting of:

Purchase price 12,000

Less trade discount (1,000)

Less early settlement discount ( 500)

10,500

Transportation cost 2,000

Installation cost 1,500

Minor spare parts 1,000

15,000

Once installed, it was found that the machine did not work properly and had to be repaired at a cost of a further 4,000. After 6 months of usage, the machine broke down again and was repaired at a cost of 2,000.

Identify capitalised cost of the machine.