Current Attempt in Progress Shamrock Utilities Corporation incurred the following costs in constructing a new maintenance building during the fiscal period: Direct labour costs incurred up to the point when the building is in a condition necessary for use as management intended, but before Shamrock begins operating in the building, $79,100 Additional direct labour costs incurred before Shamrock begins operating in the building. $5,710 Material purchased for the building, $82,700 Interest on the loan to finance construction until completion, $2,430 Allocation of variable plant overhead based on labour hours worked on the building, $28,500 f. Architectural drawings for the building, $8,200 Allocation of the president's salary, $61,300 a. b. C. d. e. g. What costs should be included in the cost of the new building if Shamrock prepares financial statements in accordance with IFRS? With ASPE? (Assume that, if there is no specific guidance from GAAP, Shamrock's management would consider a building ready for productive use when Shamrock begins operating in the building and would prefer not to capitalize interest costs directly attributable to the acquisition, construction, or development of property, plant, and equipment.) Total cost of new building $ eTextbook and Media IFRS $ ASPE
Current Attempt in Progress Shamrock Utilities Corporation incurred the following costs in constructing a new maintenance building during the fiscal period: Direct labour costs incurred up to the point when the building is in a condition necessary for use as management intended, but before Shamrock begins operating in the building, $79,100 Additional direct labour costs incurred before Shamrock begins operating in the building. $5,710 Material purchased for the building, $82,700 Interest on the loan to finance construction until completion, $2,430 Allocation of variable plant overhead based on labour hours worked on the building, $28,500 f. Architectural drawings for the building, $8,200 Allocation of the president's salary, $61,300 a. b. C. d. e. g. What costs should be included in the cost of the new building if Shamrock prepares financial statements in accordance with IFRS? With ASPE? (Assume that, if there is no specific guidance from GAAP, Shamrock's management would consider a building ready for productive use when Shamrock begins operating in the building and would prefer not to capitalize interest costs directly attributable to the acquisition, construction, or development of property, plant, and equipment.) Total cost of new building $ eTextbook and Media IFRS $ ASPE
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Current Attempt in Progress
Shamrock Utilities Corporation incurred the following costs in constructing a new maintenance building during the fiscal period:
Direct labour costs incurred up to the point when the building is in a condition necessary for use as management intended,
but before Shamrock begins operating in the building, $79,100
Additional direct labour costs incurred before Shamrock begins operating in the building. $5,710
Material purchased for the building, $82,700
Interest on the loan to finance construction until completion, $2,430
Allocation of variable plant overhead based on labour hours worked on the building, $28,500
f. Architectural drawings for the building, $8,200
Allocation of the president's salary, $61,300
a.
b.
C.
d.
e.
g.
What costs should be included in the cost of the new building if Shamrock prepares financial statements in accordance with IFRS?
With ASPE? (Assume that, if there is no specific guidance from GAAP, Shamrock's management would consider a building ready for
productive use when Shamrock begins operating in the building and would prefer not to capitalize interest costs directly attributable
to the acquisition, construction, or development of property, plant, and equipment.)
Total cost of new building $
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ASPE
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