Simple Corporation is installing a new plant at its production facility. It has incurred these costs:

Cost of plant

5,000,000

Initial delivery and handling costs

400,000

Cost of site preparation

1,200,000

Consultants used for advice on the acquisition of the plant

1,400,000

Interest charges paid to supplier of plant for deferred credit

400,000

Initialdismantling costs, the entity haspresent obligation

600,000

Operating losses before commercial production

800,000

The total costs that can be capitalized in accordance with PAS 16 is