The components of the cost of a major item of equipment are given below. GHS Purchase price 780,000 Import duties 117,000 VAT (refundable) 78,000 Site preparation 30,000 Installation costs 28,000...

The components of the cost of a major item of equipment are given below.
GHS
Purchase price 780,000
Import duties 117,000
VAT (refundable) 78,000
Site preparation 30,000
Installation costs 28,000
Pre-production costs 18,000
Initial operating losses before the asset reaches planned

performance 50,000
Estimated cost of dismantling and removal of the asset,

recognized as a provision under IAS 37 Provisions,
Contingent Liabilities and Contingent Assets 100,000
1,201,000


In accordance with IAS 16 Property, Plant and Equipment, what amount should be recognized as the cost of the asset?