The Great Company started the construction of a building on March 1, 2020 and finished it on June 30, 2021. You have the following information about the expenditures incurred on the construction in 2020: March 1 $120,000 April 30 290,000 October 1 340,000 275,000 November 1 The Great company took out a one-year loan of $500,000 on April 1, 2020. The annual interest rate is 6%. The company's general borrowings are as follows: Amount Annual interest rate 2-year Note payable, issued on March 1, 2019 1-year bank loan taken out on April 1, 2020 2-year bank loan taken out on October 1, 2018 $120,000 210,000 340,000 6% 4% 3% Required- Assuming IFRS, determine the carrying value of the asset under-construction on December 31, 2020.

The Great Company started the construction of a building on March 1, 2020 and finished it on June 30, 2021. You have the following information about the expenditures incurred on the construction in 2020: March 1 $120,000 April 30 290,000 October 1 340,000 275,000 November 1 The Great company took out a one-year loan of $500,000 on April 1, 2020. The annual interest rate is 6%. The company's general borrowings are as follows: Amount Annual interest rate 2-year Note payable, issued on March 1, 2019 1-year bank loan taken out on April 1, 2020 2-year bank loan taken out on October 1, 2018 $120,000 210,000 340,000 6% 4% 3% Required- Assuming IFRS, determine the carrying value of the asset under-construction on December 31, 2020.

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

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 6P

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