Problem 25-3 (IAA) Innuendo Company had the following loans outstanding for the entire year 2021. Specific construction loan General loan 2,000,000 10,000,000 10% 12% The entity began the self-construction of a building on January 1, 2021 and the building was completed on December 31, 2021. The following expenditures were made during the current year: January 1 July November 1 1,000,000 4,000,000 3,000,000 Total 8,000,000 Required: Compute the cost of the new building.
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Intermediate Accounting: BORROWING COSTS
Requirements: Problem 25-3 (IFRS)... Compute the cost of the new building.
Problem 25-4 (IFRS)... 1. Compute the cost of the new building on December 31, 2021 and June 30, 2022.
2. Compute the interest expense for 2021 and 2022
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