Nkosi is 64 years old. During the current year of assessment, he sold a pre-valuation date value asset for R7 600 000. Included in the amount is the agent's commission who he had paid for getting a buyer for him. The commission is 5% of the selling price. The valuation date value of the asset was correctly calculated to be R3 440 000. Just before the asset was sold Nkosi incurred improvement costs worth R1 000 000 to increase his chance of being able to sell the asset. YOU ARE REQUIRED to determine the base cost of the asset.​