Please do not rely too much on chatgpt, because its answer may be wrong. Please consider it carefully and give your own answer. You can borrow ideas from gpt, but please do not believe its answer.Very very grateful!Please do not rely too much on chatgpt, because its answer may be wrong. Please consider it carefully and give your own answer. You can borrowideas from gpt, but please do not believe its answer.Very very grateful! Company X PLC has the following general borrowings outstanding throughout the year to 30th June2019 (company's financial year end):(i) £500,000 bank loan with 5.5% Interest rate;(ii) £450,000 bank loan with 7% interest rate;(iii) £700,000 bank loan with 9.5% interest rate; and(iv) £350,000 bank loan with 10% interest rate.On 1st October 2018, the company began construction of a qualifying asset and incurred expenditureof £200,000. A further £300,000 was also spent on 1st of February 2019.Finally, a last expenditure of £150,000 was spent on 1st April 2019. All three expenditures were madeby using the existing general borrowings. You are required to calculate the amount of borrowingcosts that should be capitalised as part of the qualifying asset during the financial year ending 30thJune 2019. In case you are rounding up, please select the closest option to your answer.In case you are rounding up, please select the closest option to your answer.O a. £11,260.32O b. £29,333.15O c. £17,031.15O d. £25,078.12

The interest expense that is paid on a loan taken for constructing a long-term asset is generally…

Answered: Company X PLC has the following general…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please do not rely too much on chatgpt, because its answer may be wrong. Please consider it carefully and give your own answer. You can borrow ideas from gpt, but please do not believe its answer.Very very grateful!Please do not rely too much on chatgpt, because its answer may be wrong. Please consider it carefully and give your own answer. You can borrow ideas from gpt, but please do not believe its answer.Very very grateful!

Company X PLC has the following general borrowings outstanding throughout the year to 30th June
2019 (company's financial year end):
(i) £500,000 bank loan with 5.5% Interest rate;
(ii) £450,000 bank loan with 7% interest rate;
(iii) £700,000 bank loan with 9.5% interest rate; and
(iv) £350,000 bank loan with 10% interest rate.
On 1st October 2018, the company began construction of a qualifying asset and incurred expenditure
of £200,000. A further £300,000 was also spent on 1st of February 2019.
Finally, a last expenditure of £150,000 was spent on 1st April 2019. All three expenditures were made
by using the existing general borrowings. You are required to calculate the amount of borrowing
costs that should be capitalised as part of the qualifying asset during the financial year ending 30th
June 2019. In case you are rounding up, please select the closest option to your answer.
In case you are rounding up, please select the closest option to your answer.
O a. £11,260.32
O b. £29,333.15
O c. £17,031.15
O d. £25,078.12

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