Specimen
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MC Question 1

Which of the following should be capitalised in the initial carrying amount of an item of plant?

(1)

Cost of transporting the plant to the factory

(2)

Cost of installing a new power supply required to operate the plant

(3)

Cost of a three-year plant maintenance agreement

(4)

Cost of a three-week training course for staff to operate the plant

A       1 and 3
B       1 and 2
C       2 and 4
D       3 and 4