6) On December 31, 2013, Main Inc. borrowed $ 3,000,000 at 12 % payable annually to finance the construction of a new building. In 2014, the company made the following expenditures related to this building: March 1, $ 360,000; June 1, $ 600,000;$ 1,500,000; December 1, $ 1,500,000. The building was completed in February 2015. Additional information is provided as follows.
7) Determine the amount of interest to be capitalized in 2014 in relation to the construction of the building.
8) Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2014.
9) Busytown Corporation, which manufactures shoes, hired a recent college graduate to work in accounting department. On the first day of work, the accountant was assigned to total a batch of invoices with the use of an adding machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. Busy town Corporation gave the machine plus $ 340 to Disk Business machine Company( dealer) in exchange for a new machine. Assume the following information about the machines. For each company, prepare the necessary journal entry to record the exchange.
10) Under IFRS, Sampson company, who has a non-current asset which has been classified as held-for-sale, should
11) Miller Company, a company who uses IFRS reporting standards, sells a non-current asset classified as held-for-sale. Which of the following statements is true regarding the treatment of a gain on a subsequent increase in the fair value less cost?
12) Damson Company, a company who uses IFRS reporting standards, has a non-current asset that has been classified as