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Answer :
a) Fuel used during installation tests would NOT be included in the initial recognition value of a generator.
To determine the initial recognition value of a generator, we need to consider capital costs that are included in the acquisition and setup of the generator. This typically includes transportation costs, installation costs, and the costs necessary to bring the generator to a working condition.
Only necessary costs directly bringing the asset to its working condition are included. Fuel used during installation tests is considered part of the operational phase, not initial setup.
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