Provide accurate answers with proper step by step calculation and reasoning for the theoritical questions!

I.

On January 1, 2017, Zion Company borrowed 3,000,000 at an interest rate of 12% specifically for the construction of a new building.

The actual interest cost on this specific borrowing was 336,000

but interest of 20,000 was earned from the temporary investment of the borrowing proceeds.

Zion company also had the following other loans in 2017 for general purposes

but the proceeds were used in part for the construction of the building.

Principal Interest

10% bank loan 4,200,000 420,000

12% long term loan 7,000,000 840,000

The construction began on January 1, 2017 and was completed on December 31, 2017.

The expenditures on the construction were

3,000,000 on Jan. 1;

1,400,000 on March 31

and 4,200,000 on Sept.30.

Required: How much is the specific borrowing cost that must be capitalized?

II. On January 1, 2017, purchased a machine for 1,920,000 used in a factory with a useful life of 5 years

and a residual value of 96,000.

The machine was depreciated by the double declining balance method.

What is the carrying amount of the machinery on December 31, 2018?

a. 714,240

b. 691,200

c. 595,200

d. 1,152,000

III. Which of the following transactions of a business is/ are recorded in Journal Proper?

(i) Purchase of goods on credit

(ii) Sale of Office Furniture for cash

(iii) Discounting of Bill of Exchange with a bank

(iv) Endorsement of a Bill of Exchange in settlement of debt of the business

(a) Only (i) above

(b) Only (iv) above

(c) Both (ii) and (iv) above

(d) (i),(iii) and (iv) above

IV. This is described as "a coordinated program that is masterminded and obliged by the organization that considerably changes either the degree of a business of a component or the manner by which that business is coordinated".

a. Remaking

b. Liquidation

c. Recapitalization

d. Corporate fix up

V. Which is a cost of modifying?

a. Cost of retraining or moving continuing with staff

b. Advancing or publicizing cost

c. Interest in new system and movement association

d. Cost of moving business activities to another space

VI. A course of action for revamping is required when

I. The component has a point by point plan for the revamping.

II. The substance has brought considerable supposition up in the characters of those impacted that the component will finish the remaking by announcing its essential features to those affected by it.

a. I in a manner of speaking

b. II so to speak

c. Both I and II

d. Neither I nor II

VII. An authentic responsibility is a responsibility that is gotten from the whole of the going with, except for

a. Establishment

b. An arrangement

c. Other movement of law

d. A set up illustration of past practice[u1]

VIII. Which of the going with affirmations is mixed up concerning affirmation of a plan?

a. Courses of action will be investigated around the completion of each noteworthy period and accustomed to reflect the current best check.

b. A game plan will be used interestingly for utilizes for which the course of action was at first seen.

c. Plans will be seen for future working hardships.

d. If a component has an awkward understanding, the current responsibility under the understanding will be seen and assessed as a plan.

IX. A creation line guaranteed by a substance was demolished by fire. The substance halted a security ensure for the value of the handling plant building and plant, and a total identical to one year's advantage. During the year, there were different get-togethers with the specialists of the protection office. Finally, before year-end, it was reasoned that the substance would get pay for 90% of its case. The component got a letter that the settlement check for that total had been sent at this point it was not gotten before year-end. How is it possible that the would component treat this in the spending reports?

a. Uncover the startling asset in the editorials.

b. Hold on until one year from now when the settlement check is truly gotten and not saw this receivable at all since at year-end it is a startling asset.

c. Record 90% of the case anyway a receivable as it is by all accounts all things considered, sure that the unexpected asset will be gotten.

d. Record 100% of the case as a receivable at year-end as it is essentially certain that the unforeseen asset will be gotten, and change the 10% one year from now when the settlement check is truly gotten.

X. A substance has been served an authentic notice at year-end by the Department of Environment and Natural Resources to fit smoke cautions in its plant at the most recent focus of the next year. The cost of fitting smoke caution can be assessed constantly. How is it possible that the would substance treat this in its spending outlines at year-end?

a. See a course of action for the current year identical to the surveyed whole

b. See a course of action for the current year identical to one-half of the surveyed whole

c. No plan is seen at year-end considering the way that there is no current responsibility for the future use since the substance can avoid the future use by changing the method for undertakings, yet openness is required

d. Ignore the event