Zee Pvt. Ltd is a manufacturer of electronic appliances. The company’s management has decided to convert its production process on the solar technology as to make it more energy efficient. This new technology is believed to reduce significantly the manufacturing costs. The related cost data is here as under:
Rs.  Cost of new equipment 2,700,000
 Trade discount received from the vendor 100,000
 Staff training cost 50,000
 Initial testing Cost 80,000
 Loss of parts during testing and training 110,000
 Tax paid by the XYZ Pvt. Ltd 75,000
 Marketing costs 90,000

Requirement: Compute the costs of the new equipment eligible to capitalize.


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