D5. Noor LLC is a pharmaceutical company that produces medicines including tablets, capsules, and syrups. To expand their production capacity, they bought new machinery from Germany. This new machinery is capable of producing medicines at a faster speed with less cost per unit. In the month of February 2017, I purchased the machine worth OMR1,200,000 and paid tax OMR 100,000, which is refundable. Noor LLC incurred a cost of OMR 40,000 for transporting the machinery from Germany to Rusyal industrial area, Oman (Factory location). Noor LLC also spends an amount of OMR 200,000 for installation charges at the factory location in Rusyal. The technical staff of Noor LLC have incurred the following expenses to make the machine ready to be used for production: Materials OMR 140,000 and Labour charges OMR 130,000. In the month of March 2017, the Noor LLC conducted training sessions for its staff who are expected to use the new machinery in production. A representative from Germany was hired to conduct the training session to the staff of Noor LLC on the usage of the new machine. The cost of the German representative training program was OMR14,000 with other labor charges for the same event of OMR 6,000. In the month of April 2017, the Noor LLC started trial and testing operations on the machine. The following the cost was spent by the specialized team for material OMR42,000 and for Labour 32,000. During the initial stages of production due to frequent setup time the machine could not produce to its capacity with the right quality and the company had to incur losses of OMR 46,000, but as the time passed the company try to improve its operations on the new machine and later the productivity improved. As the machine is related to the pharmaceutical industry, it has to be dismantled after a period of 15 years of its life and restore the premises where the machine was positioned. The company is estimating that the dismantling cost and restoring the place shall cost OMR200,000. Required: Find out the cost of the machinery (initial recognition) in the books of Noor LLC, considering the provisions of IAS16. Also, justify with proper discussion