On 1 January 2020, Jennings Limited opened a new plant in Providenciales, TCI.
The following costs were incurred during January 2020 in respect of the new plant (all excluding VAT):
$
Invoiced price of the plant	60 000 000
Direct costs of testing of plant to ensure that it is operating in the manner intended by management	2 000 000
Proceeds from the sale of the goods produced in testing (as scrap)	( 600 000)
Costs incurred in selling the scrap produced during testing	100 000
Plant opening function for dignitaries, staff and clients	1 000 000
From 1 February 2020, the plant was ready to operate in the manner intended by management. The plant incurred an operating loss of $5 000 000 for the month ended 28 February 2020 primarily due to initial low orders levels. Production levels reached break-even point in early March 2020, and thereafter the plant operated profitably.
Environmental legislation requires that the site upon which the plant is developed be rehabilitated by Jennings Limited at the end of the plants useful economic life that has been reliably estimated at 10 years. On 1 January 2020, an environmental restoration provision of$ of $1 million was, in accordance with IAS 37, raised in this respect.
Required:
Calculate the cost of the plant in accordance with IAS 16 Property, plant and equipment. Briefly support your answer. (10 marks)