Larkspur Utilities Corporation incurred the following costs in constructing a new maintenance building during the fiscal period:Direct labour costs incurred up to the point when the building is in a condition necessary for use as management intended,but before Larkspur begins operating in the building, $81,700Additional direct labour costs incurred before Larkspur begins operating in the building, $5,770Material purchased for the building, $82,500Interest on the loan to finance construction until completion, $2,890Allocation of variable plant overhead based on labour hours worked on the building, $34,000f. Architectural drawings for the building, $7,750Allocation of the president's salary, $56,700a.b.C.d.e.g.What costs should be included in the cost of the new building if Larkspur prepares financial statements in accordance with IFRS? WithASPE? (Assume that, if there is no specific guidance from GAAP, Larkspur's management would consider a building ready forproductive use when Larkspur begins operating in the building and would prefer not to capitalize interest costs directly attributable tothe acquisition, construction, or development of property, plant, and equipment.)Total cost of new building$IFRSASPE

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Description: Larkspur Utilities Corporation incurred the following costs in constructing a new maintenance building during the fiscal period:Direct labour costs incurred up to the point when the building is in a condition necessary for use as management intended

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Allocation of variable plant overhead based on labour hours worked on the building, $34,000 Architectural drawings for the building, $7,750 Allocation of the president's salary, $56,700 t costs should be included in the cost of the new building if Larkspur prepares financial statements in a E? (Assume that, if there is no specific guidance from GAAP, Larkspur's management would consider a b uctive use when Larkspur begins operating in the building and would prefer not to capitalize interest c acquisition, construction, or development of property, plant, and equipment.) al cost of new building $ IFRS $ tA ASPE

Allocation of variable plant overhead based on labour hours worked on the building, $34,000 Architectural drawings for the building, $7,750 Allocation of the president's salary, $56,700 t costs should be included in the cost of the new building if Larkspur prepares financial statements in a E? (Assume that, if there is no specific guidance from GAAP, Larkspur's management would consider a b uctive use when Larkspur begins operating in the building and would prefer not to capitalize interest c acquisition, construction, or development of property, plant, and equipment.) al cost of new building $ IFRS $ tA ASPE

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 19E

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