On 1 January 2019 Nacho plc had in place $500,000 of 6.0% pa loan finance and<\/p>
$800,000 of 4.7% pa loan finance. Neither loan was taken out for a specific purpose. On<\/p>
1 February 2019 the company began to construct a new office building, which was<\/p>
funded by this existing loan finance. The building was correctly assessed as a qualifying<\/p>
asset, was completed and available for use on 31 October 2019, and has an estimated<\/p>
total useful life of 50 years. The company moved its administrative function into this<\/p>
building on 31 December 2019. The accountant included the interest payable for the<\/p>
whole year on the total loan finance as part of the cost of the office building of $650,000<\/p>
within property, plant and equipment. He did not recognise any depreciation on this<\/p>
building in the year ended 31 December 2019 because the staff did not move to the new<\/p>
building until the last day of the year.<\/p>", "transcribed_text": "", "related_book": { "title": "Intermediate Accounting", "isbn": "470964731, 978-0470964736, 978-0470161012", "edition": "9th Canadian Edition, Volume 2", "authors": "Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/516.jpg", "uri": "\/textbooks\/intermediate-accounting-9th-canadian-edition-volume-2-516", "see_more_uri": "" }, "free_related_book": { "isbn": "1009152513", "uri": "\/textbooks\/macroeconomics-for-emerging-east-asia-1st-edition-9781009152518", "name": "Macroeconomics For Emerging East Asia", "edition": "1st Edition" }, "question_posted": "2024-06-29 01:04:08", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/rope-under-tension-of-200-n-and-fixed-at-both-ends", "description": "A rope, under a tension of 200 N and fixed at both ends, oscillates in a second-harmonic standing wave pattern. 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She will selling Frozen POPS, Frozen Ices,...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/the-budd-lake-medical-center-is-located-in-a-summer-4434632", "next": "\/study-help\/questions\/please-answer-print-item-exercise-1218-algorithmic-l0-3-in-4434634" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "On 1 January 2019 Nacho plc had in place $500,000 of 6.0%", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/on-1-january-2019-nacho-plc-had-in-place-500000-4434633" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } }" } }