- Question 4 On 1 January 2012 Green Apple Began To Construct A Grocery Store Which Had An Estimated Useful Life Of 30 Y 1 (70.79 KiB) Viewed 33 times
Question 4: On 1 January 2012, Green Apple began to construct a Grocery Store which had an estimated useful life of 30 years. It purchased the site for $15 million. The construction of the building cost $5 million and the fixtures and fittings cost $4 million. The construction of the Grocery Store was completed on 30 November 2012 and it was brought into use on 1 January 2014. Green Apple borrowed $24 million on 1 January 2012 in order to finance this project. The loan carried interest at 8% pa. It was repaid on 30 June 2016. Required: Calculate the total amount to be included at cost in property, plant and equipment in respect of the development at 31 December 2012