Question
Honda (pvt) Ltd. has purchased a used Plant for its Factory. Honda (pvt) Ltd. has incurred the following costs: Agreed price to be paid to
Honda (pvt) Ltd. has purchased a used Plant for its Factory. Honda (pvt) Ltd. has incurred the following costs: Agreed price to be paid to vendor, Rs. 100,000/- Dismantling the plant at its current location, Rs. 5,000/- Transportation cost to Honda (pvt) Ltd related to plant, Rs. 1,000/- Plant's refurbishment costs prior to re-installation, Rs. 1,000/- Re-installation cost, Rs. 850/- According to IAS 16 - 'Property, Plant and Equipment', the total Cost included in non-current assets (PPE) in respect of the purchased plant should be? give step by step solution.
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