Corella Ltd has acquired a new equipment, which it has now installed in its factory. Assess which of the following items should be capitalised into the cost of the building. Provide a reason for your conclusions.
1. Labour and travel costs for managers to inspect possible new items of equipment and for negotiating for the new equipment.
2. Freight costs and insurance to get the new equipment to the factory.
3. Costs for renovating a section of the factory, in anticipation of the new equipment's arrival, to ensure that all the other parts of the factory will have easy access to the new equipment.
4. Cost of cooling machine to assist in the efficient operation of the new equipment.
5. Costs of repairing the factory door, which was damaged by the installation of the new equipment.
6. Training costs of workers who will use the equipment.