6. The component of the cost of a major item of equipment are given below: Purchase price Import duties VAT (refundable) Site preparation Installation Testing Initial losses before asset reaches planned performance Discounted cost of dismantling and removal at the end of useful life $ 780,000 117,000 78,000 30,000 28,000 10,000 50,000 40.000 1,133,000 What amount should be recognized as the cost of the asset in accordance with IAS 16 Property, Plant and Equipment? A. 1,055,000 B. 1,005,000 C. 1,133,000 D. 1,123,000 2