On January 2, Year 1, a company borrows $1.2 million on a note due in 10 years. Each year interest of 9% of the principal must be paid. Proceeds from the loan are used to finance the construction of a building. All proceeds are spent evenly throughout the year and the building is complete at the end of Year 1. At what amount is the building capitalized?

Proceeds received on the sale of a facility used to purchase a new facility should be reported as a gain from:

Nico, Inc purchased equipment by making a down payment of $3,000 and issuing a note payable for $20,000. A payment of $5,000 is to be made at the end of each year for 4 years. The applicable rate of interest is 7%. The present value of an ordinary annuity factor for 4 years at 7% is 4.18, and the present value for the future amount of a single sum of 1 dollar for 4 years at 7% is 0.645. Installation charges were $1,500. What is the capitalized cost of the equipment?

On January 1, Year 1, the Morgan Corporation borrowed $3 million at an interest rate of 8% per year. The company immediately began construction on a warehouse using the borrowed money. Work was performed evenly throughout the year and the warehouse was completed at the end of Year 1 at a total cost of $2.5 million. What amount of interest should Morgan recognize as interest expense in Year 1?

Of the following statements regarding the IFRS revaluation model is incorrect?

Which of the following two costs of purchasing a machine would be capitalized?