ZK Ltd is a company that manufactures and sells high end diamond jewellery throughits retail outlets across South Africa.Transaction 1ZK has grown globally in the past few years and the board of directors have decidedto purchase a new machine that will design and produce new diamond cut rings.A structural engineer from the US will be required to visit the site in Johannesburg todetermine the needs of ZK Ltd in order to design and build the machine. The structuralengineer's fees is determined to be R20 000 (excluding VAT). Once the machine isdesigned a technical specialist will be flown to South Africa to train the factory staff onhow to use the machine. Production on the machine cannot begin without this training.Training cost is determined to be R10 000 (excluding VAT). The Supplier of themachine will bear all risk relating to the shipment until the machine reaches ZKpremises. ZK does not have the capacity to store the machine at its premises and hasdecided that they will rent a storage space next to its current manufacturing facility forR5000 per month for 9 month until they build a new facility.Details of purchase agreementThe machine will leave the US on 1 February 2020.Total cost of the Machine is US $ 100 000.The machine will clear customs at Durban harbour on 1 March 2020.The machine will be delivered to ZK premises on 1 April 2020.The total purchase price of the machine will be settled as follows:-20% of purchase price will be settled on the 1 August 2020-80% of