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Dear Mike
I request for your clarification on the figures used to compute Investment Income specifically $20m for March 2008, $90m for April to May 2008 instead of $70m, $30m for June to August 2008 and $90m for September to October 2008.Figures reported in the calculation differs with those stated in the question.
I wait for your response.
Moses
Here’s part of the question:
‘He borrowed $100,000,000 on 1 January 2008, and immediately invested $50,000,000. On 28 February he withdrew $30,000,000’
If he borrowed $100 and spent $50, invested $50
Then he withdrew $30
How much of that $50 invested did he have after he withdrew $30 on 28 February?
That explains the $20 for March
Can you do the $90 from April to May?
And the $30 from June to August?
And $90 from September to October
Let me know if you’re still struggling
Imperia Ltd has several loans as follows:
+ The loan is worth $ 1,600,000 from 1/1 / N to 31/12 / N, interest rate of 7% / year.
+ The loan is worth $ 2,000,000 from 1/1 / N to 31/12 / N + 1, interest rate of 8% / year.
+ A loan of $ 2,500,000 from 1/1 / N + 2 to 31/12 / N + 2, interest rate of 10% / year.
The company intends to use these loans to invest in the construction of a factory with an estimated cost of approximately $ 3,800,000, construction period of 24 months, expected to start from 1/6 / N. Due to unfavorable weather, construction work was delayed to 1/8 / N until 1/8 / N + 2, the production plant was completed and to 1/1 / N + 3 began to be commissioned. into use. The estimated residual liquidation value (after 20 years) is $ 30,000.
Requirements: Please apply the relevant international financial statements standards to:
a. Determining the time when borrowing costs start to capitalize, the time to stop capitalization and the value of capitalization? Implementing related entrie
Lecturer, i can’t do this practice.i saw your video but i can’t solve, help meHi,
So what is it specifically that you do not understand? If you let me know then I can help you but I’m not here to answer a full question for you as you will not learn from it. You need to attempt the question to the best of your ability first and then we can fix the parts that you are stuck on.
Thanks
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