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McPherson Ltd. commenced construction of a new plant on July 1, 2015. All construction activities were completed by March 31, 2017, after which time the plant went into operation. Total cost incurred during the construction period included
Required: As comptroller of McPherson Ltd., determine which of the above costs should properly be included in the cost of the new plant accounts. Briefly explain why you would include or exclude each cost item.
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