Q2. On 1 January 2019 Ravioli plc began construction of a new factory. The work was completed on 31st December 2020. The costs related to the construction are shown below:

m Acquisition of land 6.0

Planning application and legal fees 0.5

Architect and engineering fees 0.9

Site preparation of the land 1.1

Construction materials 3.4

Construction labour 3.3

Included in the 3m of construction materials is 200,000 of timber that was not stored properly. The timber rotted before it could be used and had to be thrown away.

Ravioli has various general loans outstanding during the period. The details are:

8m loan at an interest rate of 4%

6m loan at an interest rate of 5%

10m loan at an interest rate of 5.8%

Calculate the cost of the Property, plant and equipment to present in the Statement of financial position as at 31st December 2020