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
                                                                                      –––––––
                                                                                              49,200
                                                                                       –––––––
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   $48,400

C 48,000 + 400 + 2,200