Question: Sunny Valley Limited produces wine Certain vintage wines take more

Sunny Valley Limited produces wine. Certain vintage wines take more than one year to age. The company has borrowed funds to cover the costs of this aging process. The company meets the interest capitalization criteria under IFRS. Capitalizable interest under IFRS is $ 100.
(a) Prepare the journal entry to record the $ 100 interest under IFRS.
(b) Show the possible journal entries under ASPE.

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  • CreatedSeptember 18, 2015
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