Question: On 1 October 2016, Bash Co borrowed R6m for a term of 1 year, exclusively to fund the construction of production facility. The interest rate

On 1 October 2016, Bash Co borrowed R6m for a term of 1 year, exclusively to fund the construction of production facility. The interest rate is 6% p.a. and is payable on maturity of the loan. The construction commenced on 1 November 2016 but no construction took place in December 2016 and January 2017 due to employees taking industrial action. The asset was available for use at 30 September 2017 at a total cost of R6m. What is the carrying value of the asset at the year ending 30 September 2017 ? A. R6 300000 B. R6 270000 C. R6 360000 D. R5 730000

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