Question 3 Apollo Limited borrowed GH1.000,000 loan from bank with an interest rate of 10% which was equal to its effective interest rate on 1 April 2015 for the construction of power generation facilities of the company. The loan was received on April 01 and utilized GH300,000 on qualifying asset. On April 01, the company deposited the remaining amount in a bank yielding interest at 6% per annum. Whole of the amount is withdrawn and paid to contractor on 31 December 2015 when the construction was completed and ready for usc. The company paid the loan to bank on 31 March 2016. Power generation facility was available for use in the business from 1 April 2015.