2. [Capitalization as property, plant, and equipment; CFA adapted]

a. Discuss, for each of the following, the conditions (under U.S. CIAAP) under which they may be included in the carrying amount of property, plant, and equipment: (i) Interest cost during the period of construction (ii) Cost of starting up a new production facility

(iii) Shipping costs incurred on machinery purchased (iv) Increases in the market value of land and buildings dur- ing the period of construction

b. Repeat part a under IASC GAAP.