GCG (Pty) Ltd acquired three two-storey buildings with a view to renting them out. The following...
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GCG (Pty) Ltd acquired three two-storey buildings with a view to renting them out. The following costs were incurred in acquiring the buildings: Purchase price Property transfer costs Attorney costs legal services Borrowing costs Start-up costs Suitable tenants for the premises have been secured. R1 500 000 R 40 500 R 28 000 R 5 560 R 30 000 REQUIRED: Calculate the amount at which the buildings will initially be measured at. Support your answer with appropriate explanations in terms of IAS 40. GCG (Pty) Ltd acquired three two-storey buildings with a view to renting them out. The following costs were incurred in acquiring the buildings: Purchase price Property transfer costs Attorney costs legal services Borrowing costs Start-up costs Suitable tenants for the premises have been secured. R1 500 000 R 40 500 R 28 000 R 5 560 R 30 000 REQUIRED: Calculate the amount at which the buildings will initially be measured at. Support your answer with appropriate explanations in terms of IAS 40.
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In accordance with International Accounting Standards IAS 40 Investment Prop... View the full answer
Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
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