Question 2 On September 1, 2022, Alpha Co borrowed $10,000,000 for a term of 1 year at an interest rate of 10% to finance the construction of a building. The interest is payable on maturity of the loan in one year. The construction began on December 1, 2022 and completed on August 31, 2023. The building construction costs $10,000,000. Requirement: What is the carrying amount of the building for Alpha Co. on the statement of financial position as at August 31, 2023.

Question 2 On September 1, 2022, Alpha Co borrowed $10,000,000 for a term of 1 year at an interest rate of 10% to finance the construction of a building. The interest is payable on maturity of the loan in one year. The construction began on December 1, 2022 and completed on August 31, 2023. The building construction costs $10,000,000. Requirement: What is the carrying amount of the building for Alpha Co. on the statement of financial position as at August 31, 2023.

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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 18E

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