Al Nava Corporation has incurred the following costs in relation to the construction of factory and for the introduction of its products to the domestic market. Cost of site preparation was for OMR 480,000, usage of materials for construction was OMR 3,000,000, labor cost incurred OMR 6,380,000 which included industrial dispute payment of OMR 180,000 and also cost of labor utilized in the normal production process was OMR 600,000. The factory had undergone many processes for testing and the cost was OMR 300,000. Certain equipment was reinstalled for which consultancy fees were paid to experts which were amounted to OMR 440,000. The staffs were relocated to new factory at a cost of OMR 1,000,000 Cost of dismantling the factory after its useful life of 10 years was OMR 200,000. During these 10 years, some equipment was replaced at a cost of OMR 250,000 and two plants were enhanced for the increased units of production at a cost of OMR 200,000. Required: a) On the role of an accountant provide information about how much of the costs should be capitalized in the factory?

b) Critically analyze and justify your answer by notes on treatment of each of the costs are to be capitalized and not to be capitalized in the above scenario.