Cullumber Manufacturing Inc. is installing a new plant at its production facility. It has incurred these costs:

Cost of the manufacturing plant (cost per supplier's invoice plus non-recoverable taxes)		$2,490,000
Initial delivery and handling costs		210,000
Cost of site preparation		608,000
Consultants used for advice on the acquisition of the plant		107,000
Interest charges paid to supplier of plant (indirect financing charges for amounts borrowed by supplier)		209,000
Estimated dismantling costs to be incurred after seven years		307,000
Operating losses before commercial production		405,000

Determine which costs Cullumber Manufacturing can capitalize in accordance with IAS 16.

2. Skysong Inc. traded a used vehicle (cost $24,200, accumulated depreciation $21,500) for another used vehicle with a fair value of $3,750. Skysong also paid $310 cash in the transaction. the journal entry to record the exchange, assuming the transaction lacks commercial substance. (Credit account titles are automatically indented when the amount is entered.Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)