Manufacturing Ltd., a Hong Kong company, incurred the following costs in the current year in relation to constructing a building. The building was completed during the current year and used for manufacturing.
Costs
Land purchase cost	100,000,000
Fees to remove trees, etc from the land and flatten the land.	70,000
Costs to purchase concrete and other materials	50,000,000
Costs to pay for labor to construct the building	20,000,000
Interest expense during construction on a loan to finance the construction.	50,000
Interest expense after construction is completed on a loan that financed the construction.	30,000
Costs to purchase and install a lift for the building.	400,000
What is the amount of the qualifying expenditure on which we would calculate the industrial building allowance?

Answer rating: 100% (QA)

Here is a breakdown of the costs that Manufacturing Ltdincurred in the current year in relation to c... View the full answer