On January Scavenging Limited opened a new plant in a manufacturing zone The following costs were incurred during January in respect of the new plant all excluding VAT: $

Invoiced price of the plant: $

Direct costs of testing of plant to ensure that it is operating in the manner intended by management: $

Proceeds from the sale of goods produced in testing as scrap: $

Costs incurred in selling the scrap produced during testing: $

Plant opening function for dignitaries, staff and clients: $

From February the plant was ready to operate in the manner intended by management. The plant incurred an operating loss of $ for the month ended February primarily due to initial low orders levels. Production levels reached breakeven point in early March and thereafter the plant operated profitably.

Environmental legislation requires that the site upon which the plant is developed be rehabilitated by Scavenging Limited at the end of the plants useful economic life that has been reliably estimated at years. On January an environmental restoration provision of $ was, in accordance with IAS raised in this respect.

Required: Calculate the cost of the plant in accordance with IAS Property, plant and equipment. You must justify each and every costs mentioned above and state whether you would include or not include to calculate the cost of the plant