ABC paid for the plant earlier than the due date and obtained a discount of 5%. The Useful Economic Life of the asset is 8 years at the end which the company will have to incur compulsory cost of Rs 20,000 to dismantle the plant and Rs 6,000 to restore the building to its original condition. There was an error in the specification of the cable and the installation had to be rectified at a cost of Rs 12,000 which is included in the above figure of Rs 28,000
Calculate the amount at which the initial cost of the plant should be recognized?
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