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Each 1000 SCU of plant costs $160,000 to buy, and any new plant takes one year to be commissioned and to become productive.
Plant is depreciated in the annual accounts using the diminishing value method, at a rate of 20% per annum.
Plant can be sold at any time. However the selling price will depend upon the age of the plant, how well it has been maintained, and how much investment has been made into quality systems and setup time reduction upgrades. If there is any difference between the actual selling price of plant and its book value then that will be reported in the accounts as either a loss or gain on sale. Sold plant is still operational until the end of the year it is sold.
