Value & Associates is the auditor for a manufacturing company with a balance sheet that includes the line item 'Property, plant and equipment'. The company's management has asked Value whether adjustments or reclassifications are required for the following material items that have been included in or excluded from 'Property, plant and equipment'. 1. A block of land was acquired during the year. The land is the future site of the client's new headquarters, which will be constructed in the following year. Commissions were paid to the real estate agent used to acquire the land, and expenditures were made to relocate the previous owner's equipment. These commissions and expenditures were expensed and are excluded from 'Property, plant and equipment'. 2. Clearing costs were incurred to make the land ready for construction. These costs were included in 'Property, plant and equipment'. . 3. During the land-clearing process, timber and gravel were recovered and sold. The proceeds from the sale were recorded as other income and are excluded from 'Property, plant and equipment'. 4. A group of machines was purchased under a royalty agreement that provides royalty payments based on units of production from the machines. The cost of the machines, freight costs, unloading charges, and royalty payments were capitalised and are included in 'Property, plant and equipment'. Required (a) Identify the audit objectives (assertions) for 'Property, plant and equipment', and indicate the main substantive tests relating to each. (b) Indicate whether each of items 1 to 4 above requires one or more audit adjustments or reclassifications, and explain why (or why not).