3 | P a g e evenly over the year (i.e. zero at the beginning of the year and increasing to $1,200,000 by the end of the year in 2020.) The interest rate on the loan is 6%. Both buildings were completed by December 31, 2020, and were ready for occupancy immediately. However, due to personal reasons from the senior management, the staff did not move to the two buildings until March 31, 2021. The Controller (Meg Nutt) capitalized the construction costs including borrowing costs for the 15-month period from Jan 1, 2020 to March 31, 2021. The buildings are estimated to have a useful life of 20 years with no residual value. The company uses the straight-line method for depreciation. The two buildings sit on a vacant farmland which belongs to the City of Surrey. The company signed a lease with the Surrey Municipality at an affordable monthly lease rate of $10,000 for 30 years. As part of the lease agreement, the municipality requires MEDLink to restore the site to conditions similar to the state prior to the construction (i.e. farmland). The company estimates that it will need to incur $120,000 to dismantle, remove and restore the site