Extra Corporation is installing a new plant at its production facility. It has incurred these costs: Purchase
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Question:
Extra Corporation is installing a new plant at its production facility. It has incurred these costs:
Purchase price of plant P2, 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 700,000
Estimated dismantling cost to be incurred after 7 years 300,000
Operating losses before commercial production 400,000
What is the total cost to be capitalized?
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