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On 1 January 2005 a company purchased some plant.
The invoice showed
$
Cost of plant 48,000
Delivery to factory 400
One year warranty covering breakdown during 2005 800
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49,200
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Modifications to the factory building costing $2,200 were necessary to enable the plant to be installed.
What amount should be capitalised for the plant in the company’s records?
A $51,400
B $48,000
C $50,600
D $48,400C 48,000 + 400 + 2,200
Sir, wont it be D, as 2,200 were for factory capitalization and not plant
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