Samsung acquired and started using the construction on January 1, 2021, with $2,000 out of the total acquisition price of $5,000 to be paid in early 2021 and the remaining $3000 to be paid on December 31, 2023. The effective interest rate at the time of building acquisition is 6% per year. On the other hand, the useful life of the building was estimated to be 10 years, and it was estimated that it would take $500 to restore the building by dismantling it at the time of its expiration, and the discount rate to be applied when calculating the present value of the restoration allowance is 6%. What is the sum of the depreciation cost (depreciation of the flat-rate law without residual value) of the 2021 construction and the financial cost of the restoration provision liabilities?

Answer rating: 100% (QA)

Solution Building cost 20003000... View the full answer