PROPERTY, PLANT AND EQUIPMENT; INTAMGIBLE ASSETS AND GOODWILL;

MINERAL RESOURCES AND BIOLOGICAL ASSETS

RELATED STANDARD: IAS 16, IAS 20 and IAS 23

INTRODUCTION
Definition

PAS 16 defines property, plant and equipment as “tangible assets which are held by an entity for use in production or supply of goods and
services, for rental to others, or for administrative purposes, and are expected to be used during more than one period.”

Components of Cost
Purchase price, including import duties and nonrefundable purchase taxes and any directly attributable costs of bringing the asset to
working conditions for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Examples of directly attributable costs include:

a. cost of site Preparation
b. Professional fees of architects and engineers.
c. estimated cost of dismantling and Removing the asset and Restoring the site, to the extent that it is
recognized as a provision.
d. Installation cost
e. initial Delivery and handling cost
f. costs of Employee benefits arising directly from the construction or acquisition of the item of property,
plant and equipment.

Measurement after Recognition

a. Cost model - Cost less any accumulated depreciation and accumulated impairment loss.
b. Revaluation model - revalued amount, being the fair value at the date of revaluation, less any
subsequent accumulated depreciation and subsequent accumulated impairment loss.

SPARE PARTS AND SERVICING EQUIPMENT & SAFETY & ENVIRONMENTAL EQUIPMENT
Spare Parts and Servicing Equipment
a. To be sold by the company Inventory
b. Major spare parts and stand-by Property, Plant, and Equipment when the entity expects to
equipment use them during more than one period.
c. Can be used in conjunction with an Property, Plant, and Equipment when the entity expects to
item of PPE use them during more than one period and depreciated over
a time period not exceeding the useful life of the related
asset
d. Safety and Environmental Such items of property, plant and equipment qualify for
Equipment recognition as assets because they enable an entity to
derive future economic benefits from related assets in
excess of what could be derived had those items not been
acquired.

ACCOUNTING FOR ACQUISITIONS

Items of property, plant and equipment may be acquired thru the following mode:
A. By purchase on cash basis E. By issuance of bonds
B. By purchase on account F. Thru exchange transactions, including trade-in
C. On installment basis G. Thru donation
D. By issuance of share capital H. Thru self-construction

PROPERTY, PLANT AND EQUIPMENT; INTAMGIBLE ASSETS AND GOODWILL;

MINERAL RESOURCES AND BIOLOGICAL ASSETS
Presentation and
Analysis of non-
current assets in the
Property, Plant and Intangible Assets and financial statements
Equipment Goodwill Mineral Resources Biological Assets
 Determining  Accounting for  Exploration and  Agricultural  Presentation
the cost of intangible assets evaluation activity  Analysis
property, plant  Accounting for expenditures
and equipment goodwill
 Depreciation
 Expenditures
 during useful
life
 Property, Plant,
and Equipment
disposal
 Property, plant
and equipment
records

Property, Plant and Equipment

Property , plant and equipment (PPE) are resources that have three characteristics: they have physical substance ( a definite size and
shape), are used in operation of the business, and are not intended for sale to customers. They are also called fixed assets. These assets
are expected to provided services to the entity for a number of years. Except for Land, PPE assets decline in service potential over their
useful lives.

Determining the Cost of Property, Plant and Equipment

The cost principle requires that PPE assets initially be recorded at cost. Thus, the coffee machines acquired by starbucks’ operators are
recorded at cost. Cost consists of all expenditures necessary to acquire the asset and make it ready for its intended use, including import
duties and non-refundable taxes after deducting trade discounts and rebates. The cost of PPE assets includes the purchase price, freight
cost paid by the purchaser and installation costs.

A class of PPE is a group of assets that are similar in nature and used for similar purposes. Examples of classes of PPE include d,
Buildings, Machinery, Motor Vehicles, Furniture & Fixtures and Office Equipment.

Date of purchased T
-March 5, 2021 Purchased Price Cost of PPE asset O
Expenses incurred to make T
PPE ready for its intended Capitalized- additional cost of A
March 6 to March 31 use PPE asset L
 Freight cost
 Custom duties C
 Non refundable taxes O
 Honorarium of installer S
 Materials and other T
expenses incurred
related to installation of O
PPE asset F
 Etc.
P
P
E

A
S
S
E
T
Date of actual used in
operation- April 1,
2021

April 2 onwards Expenses incurred Period cost- Repairs and

maintenance

LAND

Land is often used as a building site for manufacturing plant or office site. The cost of land includes (1) the cash purchase price plus stamp
duty, (2) settlement costs such as title and lawyers’ fees, (3) real estate agents’ commissions and (4) accrued property taxes and other
liens on the land assumed by the purchaser. For example, if the cash price if Php5,000,000 and the purchaser agrees to pay accrued taxes
of Php50,000,000, then the cost of land is Php5,050,000.

All necessary costs incurred to make land ready for its intended use are debited to Land account. When vacant land is acquired, these
costs include expenditures for clearing ,draining, filling, and grading. Sometimes the Land has a building on it that must be removed before
construction of a new building commences. In this case, all demolition and removal costs, less an proceeds from salvaged materials, are
debited to the Land account.

Summary of Costs chargeable to land include the following :

a. Draining cost and filling the land.
b. cost of Survey
c. unpaid Taxes up to the date of acquisition assumed by the buyer
d. cost of Option to buy the acquired land. if the land is not acquired, the cost of option is expensed
outright
e. Purchase price
f. cost of Permanent improvement (cost of grading, leveling, filling)
g. Broker’s commission
h. Escrow fees on the land
i. cost of Relocation or reconstruction of property belonging to others in order to acquire possession
j. fees for Registration and transfer of title
k. payments to Tenants to induce them to vacate the premises
l. Legal fees and other expenditures for establishing clean title
m. cost of Clearing unwanted old structures, less proceeds from salvage
n. Mortgages, encumbrances and interest on such mortgages assumed by buyer

To illustrate, assume that Pau G Manufacturing Ltd acquires a property at a cash cost of Php1,000,000 (including other incidental
expenses). The property contains an old warehouse that is demolished at a net cost of Php60,000 ( Php75,000 less proceeds from
salvaged materials). Additional expenditures are lawyer’s fee of Php10,000 and real estate agent’s commission of Php80,000. The cost of
the Land is to be computed as follows:
Cash price of property Php 1,000,000
Net removal cost of warehouse 60,000
Lawyer’s fee 10,000
Real estate agent’s commission 80,000
----------------------------
Cost of Land Php 1,150,000
================

Entry to record purchased of Land:

Land 1,150,000
Cash 1,150,000

LAND IMPROVEMENTS

Land Improvements are structural additions made to Land , such as driveways, car spaces, fences, landscaping and underground
sprinklers. The cost of Land Improvements includes all expenditures necessary to make the improvements ready for their intended use. For
example , the cost of a new car park includes the amount paid for paving, fencing, and lightning; thus, the total of all of these costs would be
debited to Land Improvements. Land Improvements have a limited useful life, and their maintenance and replacement are the responsibility
of the business. Because of their limited useful life, the costs of Land Improvement are expensed (depreciated) over their useful life.`

Improvements Examples Treatment

Non Depreciable Cos of: surveying, clearing, grading
and leveling, subdividing
Depreciable Fences, water systems, drainage
systems, sidewalks, and pavements,
landscaping
Land
Building if part of blueprint
Land improvements if not part

BUILDINGS

Buildings are facilities used in operations, such as stores, offices, factories, warehouses and aero-plane hangars (sheds, shelters). All
necessary expenditures related to the purchase or construction of a Building are debited to the Buildings account. When a Building is
purchased, such costs include the purchase price, stamp duty, settlement costs (e.g. lawyer’s fee, title insurance) and the real estate
agent’s commission. Costs to make the Building ready for its intended use include expenditures for remodeling and replacing or repairing
the roof, floors, electrical wiring and plumbing (e.g. drainage system, water system, heating system pipes, etc.).

When the new Building is constructed such as a Jollibee store, costs consists of the contract price plus payments for architect’s fee,
building permit and excavation costs. In addition, interest incurred specifically to finance the projects must be included when an significant
period of time is required to get the building ready for use. In these circumstances, interest costs are considered as necessary as materials
and labor, and may be capitalized rather than immediately expensed. However, the inclusion of interest costs in the cost of a constructed
Building is limited to the construction period. When construction has been completed, subsequent interest payments on funds borrowed to
finance the construction are debited to interest expense account.
Costs chargeable to building when purchased
a. Purchase price
b. Legal fees and other expenses incurred in connection with the purchase
c. Interest, liens and other encumbrances on the building assumed by the buyer
d. any Renovating or remodeling costs incurred to put a building purchased in a condition suitable for its
intended use such as lighting installations, partitions and repairs
e. unpaid Taxes up to the date of acquisition assumed by the buyer
f. payments to Tenants to induce them to vacate the premises

Cost of building when constructed

a. Superintendent fee
b. building Permit and license
c. Architect fee
d. Manufacturing cost (materials, labor employed and overhead incurred during the construction
e. expenditures for service equipment and fixtures made a Permanent part of the structure
f. expenditures incurred During the construction period such as interest on construction loans and
insurance
g. cost of Demolishing old building old structures, less proceeds from salvage
h. cost of Excavation
i. cost of temporary buildings used as construction offices and tools or materials shed Note: Any savings
(gain) or additional costs (loss) from construction shall not be recognized

Treatment of Building fixtures

Fixtures Treatment
Immovable Building
Movable Furniture and fixtures and depreciated over their useful life

EQUIPMENT

Equipment includes assets used in operations, such as factory machinery, computer hardware, overhead projector, computer printer, air-
conditioners and others. The cost Equipment consists of the cash purchase price, freight charges and insurance during transit paid by the
purchaser. It also includes expenditures required in assembling, installing and testing the unit.

Cost of Machinery when purchased:

a. nonrefundable Sales tax
b. cost of Water device to keep machine cool
c. cost of Adjustment to machinery for operational efficiency and to increase capacity
d. Construction of base (cost of safety rail and platform surrounding machine)
e. Purchase price
f. Insurance while in transit
g. Freight, handling, storage and other cost related to the acquisition
h. Installation cost, including site preparation and assembling
i. cost of Testing and trial run, and other cost necessary in preparing the machinery for use
j. Fees paid to consultants for advice on acquisition of the machiner
k. Unloading charges
l. initial estimate of cost of Dismantling and removing the machinery and restoring the site on which it is
located

Treatment of old installation cost

a. machinery is moved to new location – The undepreciated old installation cost is expensed. New
installation cost is charged to the NEW asset.
b. machinery is removed and retired – The undepreciated old installation cost is expensed. New
Installation cost is charged to the NEW asset. (in addition, the removal cost is also charged to
expense.)

Treatment of value added tax

a. VAT registered entities – capitalizable as part of Input tax (to be offset against output tax)
b. Non-VAT registered entities – capitalizable as part of PPE

OFFICE FURNITURE AND FIXTURES

Office Furniture and Fixtures includes assets used in operation such as check-out counter in a shops, office table, office chairs, Office filing
cabinets, conference chairs and tables and others. The cost of Office Furniture and Fixtures consists of the cash purchase price, freight
charges and insurance during transit paid by the purchaser.

TRANSPORTATION EQUIPMENT

Transportation Equipment includes assets used in operations, such as delivery trucks, cars, etc.. The cost of Transportation equipment
consists of the cash purchase price, freight charges and insurance during transit paid by the purchaser. However, other expenditure, such
as motor vehicle licenses and insurance on the entity’s trucks and cars, is not included in the cost of Transportation Equipment. These are
treated as expenses as they are incurred.

ILLUSTRATIVE PROBLEMS

PROBLEM 1
Pau Corporation acquired the following items during the year:
 A completely furnished office building on three acres of land for a lump-sum price of P2,400,000. According to independent appraisals,
the fair values were P1,300,000, P780,000, and P520,000 for the building, land, and furniture and fixtures, respectively.
 A 10-ton draw press at a cost of P180,000 with terms of 5/15, n/45. Payment was made within the discount period. Shipping costs were
P4,600, which included P200 for insurance in transit. Installation costs totaled P12,000, which included P4,000 for taking out a section
of a wall and rebuilding it because the press was too large for the doorway.
 Received a gift of land as an inducement to relocate. The land has a fair value of P450,000. Pau paid P20,000 for transfer of title to the
corporation. The land should be initially recognized at cost.
Determine the net amount to be presented in the Statement of Financial Position as Property and Equipment.

Solution
Building: 1,300,000/2,600,000 x 2,400,000 = Php 1,200,000
Land: 780,000/2,600,000 x 2,400,000 = 720,000
Furniture & Fixtures: 520,000/2,600,000 x 2,400,000 = 480,000
---------------------------
2,400,000
----------------------------
10-Ton Draw Press
Purchase price (180,000 x 95%) 171,000
Shipping costs 4,600
Installation costs 12,000
----------------------------
187,600
----------------------------
Land (gift by Pau) 450,000
-----------------------------
Total Property and Equipment Php 3,037,600
=================

PROBLEM 2
On January 2, of the current year, CAM Corporation purchased a parcel of land with an old building for P4,500,000. The appraised values
of the land and building are P3,000,000 and P2,000,000, respectively. The following additional costs are incurred during the period:
Cost of survey Php 40,000
Demolition cost 100,000
Construction cost of the new building 2,000,000
Building permit fees 120,000

Assume that the old building on the property was demolished right away and construction begun on a new warehouse that was completed
April 30, of the current year.
Determine the following:
a. Cost of the land
Allocated Cost (3,000,000/5,000,000 x 4,500,000) Php 2,700,000
Surveying cost 40,000
---------------------------
Php 2,740,000
===============
b. Cost of the old building
Allocated cost of Old Building Php 0
===============

c. Cost of the new building

Construction cost Php 2,000,000
 Demolition cost 100,000
Building permits 120,000
---------------------------
Php 2,220,000
===============

PROBLEM 3
On January 2, of the current year, Mari Corporation purchased a parcel of land with an old building for P4,000,000. The appraised values of
the land and building are P3,000,000 and P2,000,000, respectively. The building is estimated to have a remaining useful life of 5 years. On
April 1 of the current year, the company began demolishing the old building to make room for a new one. The construction ended on
December 31 of the current year. The following additional costs are incurred:

Cost of survey Php 40,000

Demolition cost 100,000
Construction cost of the new building 2,000,000
Building permit fees 120,000

Assume that the new building is to be used as property, plant and equipment.

Determine the following:

a. Cost the land and old building as property, plant and equipment at initial recognition.
Land
Allocated cost (3,000,000/5,000,000 x 4,000,000) Php 2,400,000
Cost of survey 40,000
---------------------------
2,440,000
----------------------------
Old Building
Allocated cost (2,000,000/5,000,000 x 4,000,000) 1,600,000
-----------------------------
Cost the Land and Old Building Php 4,040,000
================

Land 2,440,000
Building(Old) 1,600,000
Cash/Accounts payable 4,040,000

b. Loss on retirement of old building to be recorded in the profit or loss.

Cost of Old Bldg Php 1,600,000
Less: Depreciation (Jan to March)
(1,600,000/5 yrs x 3/12) 80,000
--------------------------
Net Book value Php 1,520,000
===============
Depreciation expense 80,000
Accumulated depreciation 80,000

Loss on retirement of old bldg. 1,520,000

Accumulated depreciation-Old bldg. 80,000
Building (Old) 1,600,000

c. Cost of the new building.

Construction cost Php 2,000,000
Demolition cost 100,000
Building permits 120,000
---------------------------
Php 2,220,000
===============

PROBLEM 4
Alexis Company acquired two items of machinery as follows:
On January 1, 2018, Alexis Company purchased Machine 1 for P900,000 in exchange for a noninterest bearing note requiring three
payments of P300,000. The first payment was made on December 31, 2018, and the others are due annually on December 31. The
prevailing rate of interest for this type of note at date of issuance was 10%. The present value of an ordinary annuity of 1 at 10% is 2.49 for
three periods. The new machine was damaged during its installation and the repair cost amounted to P10,000.

On January 1, 2018, Alexis Company acquired Machine 2 by issuing the seller a three-year, noninterest-bearing note for P600,000. The
note is due on January 1, 2021. In recent borrowing, Alexis has paid a 10% interest for this type of note. The present value of 1 at 10% for 3
years is .75.

1. What is the total cost of the two machines?

Machine 1
PV of annual payt (300,000 x 2.49) Php 747,000
------------------------
Machine 2
PV (600,000 x .75) 450,000
------------------------
Total Cost of Two Machines Php 1,197,000
==============

Journal Entry:
Machine 1 747,000
Machine 2 450,000
Discount on Notes Payable (1,500,000-1,197,000) 303,000
Notes Payable 1,500,000
2. What is the interest expense for 2018 arising from the notes payable?
Machine 1 (747,000 x 10%) Php 74,700
Machine 2 (450,000 x 10%) 45,000
-----------------------
Total Interest Expense for two machine Php 119,700
==============
Journal Entry:
Interest expense 119,700
Discount on Payable 119,700

OR
Machine 1
Loans Payable 300,000
Cash 300,000

Interest expense 74,700

Discount on Notes Payable 74,700

Machine 2
Interest expense 45,000
Discount on Notes Payable 45,000

PROBLEM 5
On March 1, 2018, Pau Co. acquired land and building by paying P10,000,000 and assuming a mortgage of P1,000,000. The land and
building have appraised values of P4,000,000 and P6,000,000, respectively. The building will be used by Pau Co. as its head office.

Draining cost and filling the land Php 33,000

Cost of grading and leveling the land 6,000
Broker’s fee on the land 6,500
Interest, liens and other encumbrances on the building assumed by the buyer 21,000
Payments to tenants of the building to induce them to vacate the premises 50,000
Cost of option of the acquired land 8,000
Registration fees and transfer of title 13,000
Mortgages, encumbrances on the land assumed by buyer 13,500
Real Property taxes on the land accrued after acquisition 5,000
Cost of shrubs, trees, and other landscaping 53,000
Repairs and renovation costs before the building is occupied 66,400
Unpaid taxes on the building up to the date of acquisition 2,000
Legal Fees and other expenses incurred in connection
with the purchase of the building 8,000

Determine the adjusted cost of the following:

 1. Land
2. Building
3. Land improvements

Solution
Land Building Land Improvement Others
Allocated purchase price 4,400,000 6,600,000
Draining cost and filling the
land. 33,000
Cost of grading and leveling the
land 6,000
Broker’s fee on the land 6,500
Interest, liens and other
encumbrances on the building
assumed by the buyer.
21,000
Payments to tenants of the
building to induce them to
vacate the premises. 50,000
Cost of option of the acquired
land 8,000
Registration fees and transfer of
title. 13,000
Mortgages, encumbrances on
the land assumed 13,500
Real Property taxes on the land
accrued after acquisition 5,000
Cost of shrubs, trees, and other
landscaping 53,000
Repairs and renovation costs
before the building is occupied
66,400
Unpaid taxes on the building up
to the date of acquisition 2,000
Legal Fees and other expenses
incurred in connection with the
purchase of the building
8,000
Adjusted Balances 4,480,000 6,697,400 53,000 5,000

PROBLEM 6
On March 19, 2018, REVIEW Co. acquired land and an unusable building for a lump-sum price of P10,000,000. The
existing building will be demolished and a new building will be constructed.

Draining cost and filling the land Php 35,000

Cost of grading and leveling the land 8,000
Broker’s fee on the land 7,500
Building permit and licenses 60,000
Cost of paving parking lot adjoining building 50,000
Cost of option of the acquired land 9,000
Registration fees and transfer of title 13,000
Mortgages, encumbrances on the land assumed by buyer 13,500
Real Property taxes on the land accrued after acquisition 5,000
Materials used in construction 600,000
Labor paid for the construction 300,000
Other overhead cost incurred as result of construction 220,000
Determine the adjusted cost of the following:
1. Land
a. 10,029,500 b. 10.044,000 c. 10,050,500 d. 10,086,000
2. Building
a. 1,120,000 b. 1,180,000 c. 1,240,000 d. 1,245,000
3. Land Improvements
a. 5,000 b. 55,000 c. 50,000 d. 65,000

Solution:
Land
Land Building Improvement Others
Purchase price 10,000,000
Draining cost and filling the land 35,000
Cost of grading ang leveling the
land 8,000
Broker’s fee on the land 7,500
Building permit and licenses 60,000
Cost of paving parking adjoining
building 50,000
Cost of option of the acquired land
9,000
Registration fees and transfer of
title 13,000
Mortgages, encumbrances and
interest on such mortgages
assumed by the buyer 13,500
Real property taxes on the land
accrued after acquisition 5,000
Materials used in construction 600,000
Labor paid for the construction 300,000
Other overhead cost incurred as a
result of construction 220,000
Adjusted balances 10,086,000 1,180,000 50,000 5,000

PROBLEM 7
Caldero Co acquired a new machine. Details of the acquisition are as follows:
Purchase price including VAT 1,568,000
Cost of Water device to keep machine cool. 8,000
Cost of safety rail and platform surrounding machine 12,000
Installation cost, including site preparation and assembling. 20,000
Fees paid to consultants for advice on acquisition of the machinery. 13,000
Dismantling cost of the machine 10,000
Repair cost of the machine damaged while in the process of installation 5,000
Loss on premature retirement-old machine 18,000
Other nonrefundable Sales tax 13,000
Cost of training for personnel who will use the machine 25,000
Cost of removing old machine 10,000
Determine the cost of the Machinery
a. 1,476,000 b. 1,422,000 c. 1,420,000 d. 1,644,000
 Solution:
Machinery Others
Purchase price including VAT (1,568,000/1.12) 1,400,000
Cost of water device to keep machine cool 8,000
Cost of safety rail and platform surrounding machine
12,000
Installation cost, including site preparation and
assembling 20,000
Fees paid to consultants for advice on acquisition of
the machinery 13,000
Dismantling cost of the machine 10,000
Repair cost of the machine damaged while in the
process of installation 5,000
Loss on premature retirement-old machine 18,000
Other nonrefundable sales tax 13,000
Cost of training for personnel who will use the
machine 25,000
Adjusted balances 1,476,000 48,000

THEORETICAL CONCEPTS
1. Theoretically, which of the following costs incurred in connection with a machine purchased for use in
company’s
manufacturing operations be capitalized?
Insurance on machine Testing and preparation of
while in transit machine for use
a. Yes Yes

b. Yes No
c. No Yes
d. No No
2. As to land, capitalizable incidental costs include all, except
a. Attorney’s fees for establishing clean title
b. Expenditures for sidewalks, pavements, parking lot and driveways
c. Special assessments for local improvement which benefits the property
d. Cost of relocation or reconstruction of property belonging to others in order to acquire possession
3. The cost of the plant asset “building” should usually include all, except
a. Cost of renovation or remodeling required to prepare the building for its intended use
b. Property taxes related to the period prior to acquisition that are assumed by the buyer
c. Expenditures for service equipment and fixtures made as permanent part of the building
d. Carrying amount of a usable building recently purchased which was removed to make
room for the construction of new building
4. If the expenditures for land improvements result in the addition of costs which are not subject to
depreciation, such expenditures may be charged to
a. Land account b. Building c. Operations d. Land improvements
5. When a group of assets is acquired for a lump sum price, the total cost should be allocated to the
individual assets based on their relative
a. Fair value b. Book value c. Assessed value d. Appraised value
6. Improvements which result to increased future economic benefits include all, except
a. Upgrade of machine parts to improve quality of output
b. Adoption of a new production process leading to large reduction in operating cost
c. Modification of an item of property to extend its useful life or increase its capacity
d. Expenditure on repair or maintenance of property, plant and equipment, such as cost of
servicing or overhauling plant and equipment
7. An entity owns a piece of real estate costing P5,000,000 acquired over 30 years ago. This property
includes a fully depreciated building, still in use, and costs P3,000,000. The company also purchased
the adjoining lot on which is found an occupied but old unusable apartment building. The company
intends to construct a concrete and modern factory building on these two tracts of land. Which is an
incorrect expenditure statement?
a. The cost of demolishing the old apartment building should be charged to the building account.
b. The cost of demolition of the old fully depreciated building should be charged to the land
account.
c. The cost of excavation of the soil so as to construct a basement for the building should be
charged to the building account.
d. Payments made to the occupants of the apartment building to encourage them to vacate the
property should be charged to the land account.
8. When an entity purchases land with building on it and immediately tears down the building so that the
land can be used for the construction of a plant, the cost incurred to tear down the building shall be
a. Expensed as incurred
b. Added to the cost of the plant
c. Added to the cost of the land
d. Amortized over the estimated time period between the tearing down of the building and the
completion of the plant
9. An entity purchased land to be used as the site for the construction of a plant. Timber was cut from the
building site so that construction of the plant could begin. The proceeds from the sale of the timber
shall be
a. Nettled agains the cost to clear the land and expensed as incurred
b. Deducted from the cost of the plant
c. Deducted from the cost of land
d. Classified as other income
10. The cost of land shall include all of the following, except
a. Commission related to acquisition
b. Property tax after date of acquisition assumed by the purchaser
c. Property tax to date of acquisition assumed by the purchaser
d. Cost of survey