a great deal of plant and machinery is mobile its value can be
determined after taking into account its location. Some plant and
equipment can be so remote that the cost of bringing to a potential
buyer is more than what the plant and equipment is worth. This
applies particularly to large and heavy plant and equipment.
plant and equipment is normally sold with the premises in which it is
located. This would apply to the highly specialised buildings covered
above. The sale of such a building would necessarily, include the
plant and equipment. Some plant and equipment cannot be removed at a
reasonable cost to make its sale economical.
The removal of a
large baker’s oven may result in expensive damage to
the building. The underground petrol tanks of a service station are
often filled with sand rather than incur the expense of removing them
when the service station use becomes uneconomical.
obsolete the value is scrap value which in some cases may be quite
high particularly if the item can be dismantled. Parts are cheaper
and easy to transport and may have value as replacement parts for
operating plant and machinery.