The construction of a house property was completed on 28.2.2018. The assessee has taken a loan of 10,00,000 @12% p.a. Compute the deduction of interest for the PY 2017-18, if the loan was taken on 1.5 2017
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The construction of a house property was completed on 28.2.2018. The assessee has taken a loan of 10,00,000 @12% p.a. Compute the deduction of interest for the PY 2017-18, if the loan was taken on 1.5 2017
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- Salmah Bhd constructed a building on 1 Jan 2017. The building was completed on 31st December 2019. Construction cost (excluding interest) incurred on the building was RM 1,500,000. +150 000 Salmah Bhd secured a loan of RM 1,000,000 from Sheila Finance Bhd to finance the construction costs at 10% interest rate per annum. Repayment period of loan was 5 years. Since Salmah Bhd did not need the full amount of the loan in the 1st 5 year of the construction, it deposited RM 600,000 in fixed deposit which yielded an interest 8% per annum. The deposit matured on 31st December 2017. The company policy is to capitalised borrowing costs as part of the cost of assets. The useful life of building was estimated to be 50 years. You are required: a) Calculate the cost of building b) Show the income statement (extract) for the years ended 31 December 2017 until 31st December 2020.On December 1, 2020, a client paid P 120,000 for the rental of a shop for 3 months An asset method was used to record the payment of the said amount. What amount is recognized as an expense at the end of the year 2020?1. On January 1, 2019, Christian company took out a loan of 12,000,000 with an annual interest of 10% in order to finance specifically the renovation of a building. The renovation work started on the same date. Work on the building was substantially complete on October 31, 2019. The loan was repaid on December 31, 2019, and P150,000 investment income was earned in the period to October 31, 2019, on the proceeds of the loan not yet used for renovation. What is the amount of capitalizable borrowing cost?
- A company purchases land for $30,000 on December 1, 2017. On December 31, 2021, the land has an estimated value of $45,000. The company had received a written offer for the land of $43,000 on November 15, 2021. What amount should the land be recorded at on the financial statements on December 31, 2021?On January 1, 2017, Star Company leased a building to Cosmos Inc. under an operating lease for ten years at P500,000 per year, payable the first day of each lease year. Star Company paid P150,000 to a real estate broker as a finder's fee. The building is depreciated P120,000 per year. For 2017 Star incurred insurance and property tax expense totaling P90,000, Star's net rental income for 2017 should bea. 275, 000b. 290,000c. 350,000d. 365,000Tran Company acquired an equipment from a manufacturer on June 30, 2018 and signed a $540,000, 18 month interest-bearing note in exchange. The company is obligated to pay a total of $562,500 when the note matures. Determine accrued interest on December 31, 2018? C. $7,500 is the Answer. Please explain how you get to this answer and explain math computation thoroughly.
- On January 1 2017, George Company purchased a new building. George paid $25,000 as a down payment and issued a long-term note to finance the balance. The note, which carries an interest rate of 4%, requires George to make annual payments of $55,000 for six years, with the first payment due on December 31, 2017. How would I find out what amount George should record as the cost of the new building ?PINAUTANG started constructing a building for its own use in March 1, 2020, PINAUTANG provided the following information related to the construction: Outstanding loans of the Company at January 1, 2020: Interest Rate Amount of loan Interest Cost 5% P10,000,000 P 500,000 10% 20,0000,000 2,000,000Total P30,000,000 P2,500,000 On January 1, 2020, PINAUTANG also borrowed P3,000,000 at 15% per annum, to specifically fund its expected construction on March 1, 2020. March 1, 2020 P1,000,000 February 1, 2021 P 3,000,000May 31, 2020 8,000,000 March 31, 2021 2,000,000July 1, 2020 7,000,000 November 31, 2020 4,000,000December 31, 2020 1,000,000 How much is the total cost of constructed asset as of December 31, 2020 a. 23,950,000 b. 21,944,217 c. 22,133,060 d. 22,152,467Blerghe started constructing a building for its own use on January 1, 2020. Blergh provided the following information related to the construction: Outstanding loans of the Company at January 1, 2020: Interest Rate Amount of loan Interest Cost 5% P10,000,000 P 500,000 10% 20,000,000 2,000,000 Total P30,000,000 P2,500,000 Construction expenditures: July 1, 2020 7,000,000 November 31,2020 3,000,000 December 31, 2020 1,000,000 The amount of borrowing cost that should be charged to profit or loss for the period is? a. 340,142 b. 2,208,450 c. 312,375 d. 2,187,625
- On January 1, 2017, Zingo Company signed a contract to lease Bingo Company an equipment has a useful life of 6 year and salvage value of $3000. According to term of contract Bingo should pay annual payment of $8,000 to Zingo, and discount rate is 9%, Assuming the salavge is guaranteed and payment is at beginning of each year, compute the interest expense and interest revenue should be recorded in Zingo and Bingo companies on Dec.31, 2017? a.Interest expense $3053, interest revenue $3053. b.Interest expense $0, inyerest revenue $0. c.Interest expense $3053, interest revenue $3228. Please solve the question ASAP with detailed explanation.show wokings and answer all questions. this is accounting question On 1 January 2019 Stremans Co. borrowed GHc 1.5 million at a rate of 8%to finance the production of two assets, both of which were expected to takea year to build. Work started during 2019. The loan facility was drawn downand incurred on 1 January 2019, and was utilized as follows, with theremaining funds invested temporarily at a rate of 3% during the accountingperiod before these funds were required for spending. Asset A Asset B Ghc 000 Ghc 0001 January 2019 250 5001 July 2019 150 3001 November 2019 100 200 Requiredi. Calculate the borrowing cost eligible for capitalization for each qualifyingasset ii. Calculate the cost of each asset as at 31 December 2019.2. In 2019, Eliza company constructed a new building at a cost of 45,000,000. The expenditures for the building which was finished late in 2017 were incurred evenly during the year. The entity had the following loans outstanding on December 31, 2019:· 10% note to finance specifically the construction, dated January 1, 2019, P15,000,000. The note is unpaid on December 31, 2019. Investments were made on the proceeds from the loan and income of 150,000 was realized in 2019.· 12% 10-year bonds issued at face amount on April 30, 2018, 45,000,000.· 8% 5-year note payable, dated March 1, 2018, 15,000,000.What is the capitalizable borrowing cost?