Bob and Doug Mackenzie own a small manufacturing facility making maple syrup. Bob, the father, founded CanCo 20 years ago and Doug, the son, recently joined the business. CanCo distributes maple syrup in bulk to retailers (e.g. restaurants, coffee shops etc) and does not sell directly to consumers. Recently, Bob had to retire from the day-to-day operations. However, he still sits on the Board of Directors as a shareholder. You, CPA, just joined CanCo as a Controller. CanCo follows IFRS. Doug is very excited about a new opportunity that knocked on their door this year. A medium-size retailer approached CanCo to place their maple syprup in their stores to sell to individual consumers. Doug thought this was a great idea even though this would require packaging the maple syrup in individual containers which CanCo has never done before. To finance the new business line, CanCo had to obtain a loan from Maple Bank. To bring the project to fruition, CanCo had to upgrade its existing manufacturing equipment with an add-on in form of a conveyor and automatic arm that pours the ready maple syrup into the individual containers. The equipment was brought in from China. The purchase price of the equipment was $220,000 and the duty on the equipment was 13% of the purchase price. The transportation costs added up to $5,000. Doug purchased an insurance policy for $2,000 in case the equipment gets lost en route. Doug purchased a link to participate in a $1,000 webinar that explained how to install the equipment. After failing numerous times, Doug hired his cousin to install the equipment and paid him $500. A professional team was finally hired for $2,500 to install the equipment. The fee included testing of the equipment and training key personnel on the equipment as well. If the training was purchased separately, Doug would have to pay $1,500 just for that. To make space for the new conveyor, the manufacturing facility (which is owned by CanCo) had to be extended. A construction crew was hired to destroy a portion of the existing wall and extend the facility into the former backyard. The construction crew discovered a major leak in the wall and said that it was lucky that the wall was being removed as it would have to be repaired in any case. The construction crew charged $20,000. CanCo stored excess maple syrup in metal barrels at an encampment four hours north of Toronto to avoid refrigeration costs. Doug received word that there was a fire at the encampment last night. Once he arrived in the office this morning Doug started work on the insurance claim. He estimates that $30,000 of maple syrup inventory was stored at the encampment. Based on initial reports the barrels look to be in good condition. Doug estimates that it will cost $2,000 to clean the salvageable barrels and transport them to Toronto for sale but then he should still be able to sell the syrup inside. He does not expect to realize any insurance proceeds before CanCos year end but is filing a claim for the full $30,000 inventory value. Required: Advise Doug about the accounting issues raised.