An entity imports a machine with a list price of 100,000. The supplier grants a trade discount of 5 % on the list price. The entity pays non-refundable import duties of 4,000 and VAT of 19,000, which it fully recovers from the tax authorities. What purchase price should it include in the cost of the machine?
- List price
- 100,000
- Trade discount
- 5 %
- Non-refundable import duties
- 4,000
- Recoverable VAT
- 19,000