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A company has purchase a large item of plant. The following are the cost incurred...

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Accounting

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A company has purchase a large item of plant. The following are the cost incurred The foll The test run cost was to ensure that the asset was installed and working correctly. Items of inventory were produced during the test run. These had a sale value of GHS 10,000 . Local government officials have granted the company a license to operate the asset on the condition that the company will remove the asset and return the site to its former condition at the end of the assets life. The company has recognized a liability of GHS250,000 in respect of the expected clearance cost. What is the cost of the asset

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