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35. MUFC Ltd had the following loans in place at the beginning and end of 2006. 1 Jan. 2006 31 Dec. 2006 GHC'm GHC'm
35. MUFC Ltd had the following loans in place at the beginning and end of 2006. 1 Jan. 2006 31 Dec. 2006 GHC'm GHC'm 10% bank loan repayable 2008 9.5% bank loan repayable 2009 8.9% debenture repayable in 2007 The 8.9% debenture was issued to fund the construction of a qualifying asset (a piece of mining equipment), construction of which began on 1 July 2006. On 1 January 2006, MUFC Ltd began construction of a qualifying asset, a piece of machinery for a hydro-electric plant, using existing borrowings. Expenditure drawn down for the construction was: GHC30m on 1 January 2006; GHC20m on 1 October 2006. 120 80 120 80 150 Required: Calculate the borrowing costs that can be capitalised for hydro-electric plant machine. 36. Xtra Ltd had the following loan liability in place during 2015: GHC4,000,000 at 20% per annum GHC12,000,000 at 24% per annum The company installed new bottling plant costing GHC3,600,000 in 2015, the project of which was financed from the pool of loan funds. The project commenced in the first week of January 2015 and was completed on 30th September 2015. The plant was commissioned and put to use on 1 November 2015. Required: How much borrowing costs can be capitalised as part of the cost of the bottling line?
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