16. Extravagant Inc. is installing a new plant at its production facility. It has incurred these costs: Cost of plant (as per supplier's invoice plus taxes) Initial delivery and handling costs Cost of site preparation Consultants used for advice on the acquisition of the plant Interest charges paid to supplier of plant for deferred credit Estimated dismantling costs to be incurred after 7 years Operating losses before commercial production $2,500,000 $200,000 $600,000 $700,000 $200,000 $300,000 $400,000 Required: Advise Extravagant Inc. on the costs that can be capitalized in accordance with IAS 16