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Initial Recognition Extra Corporation is installing a new plant at its production facility. It has incurred these costs: Purchase Price of Plant P 5,000,000 Initial Delivery and Handling Costs 250,000 Cost of Site Preparation 800,000 Consultants used for advice on the acquisition of the plant 1,400,000 Estimated dismantling costs be incurred after7 years 700,000 Operating losses before commercial production 400,000 Required: The total costs that can be capitalized in accordance with PAS/IAS 16 is:

Initial Recognition Extra Corporation is installing a new plant at its production facility. It has incurred these costs: Purchase Price of Plant P 5,000,000 Initial Delivery and Handling Costs 250,000 Cost of Site Preparation 800,000 Consultants used for advice on the acquisition of the plant 1,400,000 Estimated dismantling costs be incurred after7 years 700,000 Operating losses before commercial production 400,000 Required: The total costs that can be capitalized in accordance with PAS/IAS 16 is:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Initial Recognition Extra Corporation is installing a new plant at its production facility. It has incurred these costs: Purchase Price of Plant P 5,000,000 Initial Delivery and Handling Costs 250,000 Cost of Site Preparation 800,000 Consultants used for advice on the acquisition of the plant 1,400,000 Estimated dismantling costs be incurred after7 years 700,000 Operating losses before commercial production 400,000 Required: The total costs that can be capitalized in accordance with PAS/IAS 16 is:
Transcribed Image Text:Initial Recognition Extra Corporation is installing a new plant at its production facility. It has incurred these costs: Purchase Price of Plant P 5,000,000 Initial Delivery and Handling Costs 250,000 Cost of Site Preparation 800,000 Consultants used for advice on the acquisition of the plant 1,400,000 Estimated dismantling costs be incurred after7 years 700,000 Operating losses before commercial production 400,000 Required: The total costs that can be capitalized in accordance with PAS/IAS 16 is:
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