On 1 January 2022, Apex Co borrowed 10,000,000 to construct 3 assets Hill, Bill and Pill....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On 1 January 2022, Apex Co borrowed 10,000,000 to construct 3 assets Hill, Bill and Pill. The following amounts were utilized during the year, while the remaining fund was invested temporarily. The loan rate was 5% per annum, and Apex can temporarily reinvest the surplus at 3% per annum. Hill Bill (BD) 2,000,000 January 1, 2022 July 1, 2022 September 1, 2022 (BD 1,000,000 2,000,000 3,000,000 Pill (BD) 500,000 1,500,000 Required: Calculate the borrowing costs that may be capitalised for each asset and the cost of Hill, Bill and Pill assets as at 31 December 2022. (ignore the compounding effect of the interest and round off your answers to the nearest BD). On 1 January 2022, Apex Co borrowed 10,000,000 to construct 3 assets Hill, Bill and Pill. The following amounts were utilized during the year, while the remaining fund was invested temporarily. The loan rate was 5% per annum, and Apex can temporarily reinvest the surplus at 3% per annum. Hill Bill (BD) 2,000,000 January 1, 2022 July 1, 2022 September 1, 2022 (BD 1,000,000 2,000,000 3,000,000 Pill (BD) 500,000 1,500,000 Required: Calculate the borrowing costs that may be capitalised for each asset and the cost of Hill, Bill and Pill assets as at 31 December 2022. (ignore the compounding effect of the interest and round off your answers to the nearest BD).
Expert Answer:
Answer rating: 100% (QA)
I Step 1 Define Capitalisation of Borrow Cost The interest incurred during the construction period o... View the full answer
Related Book For
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
Posted Date:
Students also viewed these accounting questions
-
Create cause and affect fish bone diagram The Saber acquisition project is well underway. The team leads for the 3.0 Administration work stream has come to you with an issue that will require...
-
On 1 March 2010, Granite Corporation (GC) started the construction of a new plant to meet the growing demand for its products. The new plant was completed at a cost of Rs. 100 million on 31 May 2011....
-
For the last five years, Mrs. Rosetta Stone has been working as a technical writer and translator for Brandan Books Incorporated, (BB Inc.), a Canadian controlled private company located in Kamloops,...
-
in an armicie entitled Fuel Economy Calculations tio Be Alteted lames Healey indicated that the goermnt planned to change how it caleulates fuel economy for new cas and trucks Thia in the first...
-
In January 2010, installation costs of $6,000 on new machinery were charged to Repair Expense. Other costs of this machinery of $30,000 were correctly recorded and have been depreciated using the...
-
Fill in the Blanks. Any two successive displacements of the system, separated by a cycle, can be used to find the __________ decrement.
-
Wendy Craven is the sole shareholder of a property management company near the campus of Pensacola Junior College. The business has cash of \($6,000\) and furniture that cost \($12,000\) and has a...
-
Many people are concerned about the rising price of gasoline. Suppose that government officials are thinking of capping the price of gasoline below its current price. Which of the following outcomes...
-
The following information relates to the pension plan for the employees of Sheridan Company: 1/1/25 12/31/25 12/31/26 Accum. benefit obligation $9740000 $10160000 $13100000 Projected benefit...
-
Visit the web page of one of the associations listed under Careers in Operations Management and briefly list the targeted members and the services that they provide to their members.
-
4. Nickel and cobalt may be produced by leaching of laterite ores. These are oxidized, near-surface deposits containing oxides, hydroxides and aluminosilicates. Nickel may be present in a (mainly)...
-
A constriction in a pipe reduces its diameter from 7.1 cm to 2.9 cm. Where the pipe is wider, the fluid velocity is 8 m/s. Find the fluid velocity where the pipe is narrow.
-
Summarize the article below in an extensive and detailed way as a whole , also please formulate three questions for further discussions :...
-
A softball having a mass of 0.25 kg is pitched horizontally at 150 km/h. By the time it reaches the plate, it may have slowed by 14%. Part A Neglecting gravity, estimate the average force of air...
-
Company A had the following loans outstanding for the entire year: Amount Interest Rate Specific construction loan $ 1 0 0 , 0 0 0 1 0 % General loan 2 , 0 0 0 , 0 0 0 1 2 The company began the self...
-
Some say that changing to a team-based arrangement "just makes sense" for organizations. What are the four primary reasons why this might be so? - Describe at least three points in the...
-
Explain what's space efficiency for depth-first search and breadth-first search of a graph(not a tree). That is what the extra space needs for these two methods? And what the worst case and except...
-
Review Exhibit 11.4. Analyze each product on the graph according to the characteristics that influence the rate of adoption. For example, what can you conclude from the data about the relative...
-
Cory Magnum has been working for Matrix Products Inc. for five years and has gained the respect of his peers for his exemplary behaviour and work ethic. His job includes receiving cash and cheques...
-
Canadian Products Corporation manufactures office equipment and supplies. The company authorized a bond issue on January 1, 2013, with the following terms: Maturity (par) value: $ 120,000,000...
-
Danier Leather Inc. is one of North Americas leading designers, manufacturers, and retailers of quality leather and suede for both women and men. The company reported the following items in its...
-
Meagan Casey, the sole proprietor and owner of Sierra Marina, would now like you to help her prepare some basic financial reports related to the companys accounts receivable and payable....
-
Creating More Supporting Reports for Larrys Landscaping & Garden Supply Scott wants you to help him provide more supporting reports. Create the reports he has requested, and write down the answers to...
-
Ocean View Flowers is in the wholesale distribution and sales industry and is located at 100 Ocean Ave. in Lompoc, CA 93436. Ocean View started business as a corporation on January 1, 2016, and owner...
Study smarter with the SolutionInn App