Question: Dear tutors please answer question 4 below according to the marks. tq Jambu Bhd has the following borrowings outstanding as at 31 December 2021: The
Jambu Bhd has the following borrowings outstanding as at 31 December 2021: The 6% redeemable preference shares were issued to fund setting up of the business operation while the 4.5% bond was used for the purpose of Bit-Coin investment. The remaining borrowings were then used to fund construction of a factory which cost RM20 million. Construction began on 1 January 2021. Expenditure drawn down for the construction was RM12 million on 1 January 2021 and RM8 million on 1 May 2021. Required: (a) Compute capitalization rate for the general borrowings in constructing the factory. (10 marks) (b) Compute total borrowing costs to be capitalized for the factory for the year ended 31 December 2021. (7 marks) (c) Compute initial cost of the factory
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