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The financial controller of Greener Pastures Inc is reviewing recent transactions related to property plant and equipment: i) Greener Pastures Inc, is installing a new

The financial controller of Greener Pastures Inc is reviewing recent transactions related to property plant and equipment: i) Greener Pastures Inc, is installing a new plant at its production facility. It has incurred these costs: - Cost of the plant $250,000. - Initial delivery and handling cost $ 20,000. - Cost of site preparation $ 60,000. - Consultants used to advice on the acquisition $ 70,000. - Interest charges paid to supplier for deferred credit $ 20,000. Estimated dismantling cost to be incurred after 7 years $ 30,000. - Operating losses before commercial production $40,000. ii) Greener Pastures Inc. has acquired a heavy road transporter at a cost of $ 100,000 (with no breakdown of component parts). The estimated useful life is 10 years and depreciation is calculated on a straight-line basis. At the end of the sixth year, the roller requires replacement, as further maintenance is uneconomical due to the off-road time required. The value of the roller at date of replacement was $33,500 and was scrapped for parts without compensation. The remainder of the vehicle is perfectly road worthy and is expected to last for the next four years. The cost of the new roller is $ 45,000. The accounting team does not know if the roller can be recognized as an asset and if so, what treatment they should use for original and new roller. The financial controller requires you to create a brief review to state how the above transactions should be treated according to IFRS. They requested you show calculations where necessary.

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