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

Cost of the manufacturing plant (cost per suppliers invoice plus non-recoverable taxes) $2,500,000

Initial delivery and handling costs $200,000

Cost of site preparation $600,000

Consultants used for advice on the acquisition of the plant $100,000

Interest charges paid to supplier of plant (indirect financing charges for amounts borrowed by supplier) $200,000

Estimated dismantling costs to be incurred after seven years $300,000

Operating losses before commercial production $400,000

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