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

EIO.7 DAC 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) $2,500,000 Initial delivery and handling costs Cost of site preparation Consultants used for advice on the acquisition of the plant Interest charges paid to supplier of plant (indirect financing charges for amounts borrowed by supplier) Estimated dismantling costs to be incurred after seven years Operating losses before commercial production Instructions Determine which costs DAC Manufacturing can capitalize in accordance with IAS 16. 200,000 600.000 100,000 200.000 300,000 400,000