Hanol Ltd Construction of Hanoi Ltd.'s new store began on 1 April 2009. The following costs were incurred on the construction (in $1,000): Freehold land 4,500, Architect fees 620 Site preparation 1,650: Materials 7,800, Direct labor costs 11,200; Legal fees 2.400 General overheads 940. Hanoi Ltd. obtained a $25m unsecured loan on 1 April 2009 to aid construction of the new store (which meets the definition of a qualifying asset as per IAS 23). The loan carried an interest rate of 8% per annum and is repayable on 1 April 2012 The store was completed and brought into use following its grand opening on 1 April 2010. The useful life of the store is 20 years and Hanoi assumes zero residual value. In addition, Hanoi Ltd. purchases equipment on 1 January 2010, for $300,000, with a useful life of 3 years and no residual value. Hanoi uses a calendar year reporting period. Required: a. Calculate the amount to be included as plant asset in respect of the new store, and state what impact (if any) the loan would have on the income statement for the year ended 31 December 2010. (Assume for the purpose of this exercise that freehold land is not recognized as a separate plant asset) b. Calculate and compare the depreciation expense for 2010, 2011 and 2012 using (a) linear (or straight-line) depreciation, and (b) declining-balance (DB) depreciation method for the store. You can assume the DB rate to be 2x the linear rate for this exercise. c. Regarding the equipment only: suppose Hanoi opted to depreciate linearly and that at the end of 2010, the fair value minus cost to sell is 175,000 and the value in use is 180,000. Record any impairment loss, if necessary