Calculate the interest to be capitalised

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Reference no: EM132710829

The boat is carried at cost less accumulated depreciation and accumulated impairment losses. Depreciation is provided at 15% per annum on a straight-line basis. The elements of the financial statements are fully recognised for a month if the transactions related to those elements occur more than 14 days in the month.

REQUIRED: (Round your answer to the whole number)

Problem (a) Calculate the interest to be capitalised for the construction of Fleur Boat. Prepare the journal entries related to the interest capitalisation for the year 2016.

Problem (b) Calculate the recoverable amount and impairment loss for Mirabella Boat, if any, on 31 December 2018 and prepare the relevant journal entries, if any.

Problem (c) Prepare the necessary journal entries related to the revaluation of the building for the years 2018 and 2019.

Problem (d) After a few years of using Fleur Boat, the boat was repaired during the FYE 2019 at the cost of RM50,000. The repair includes removing the old fibreglass skin with a new fibreglass and painting of the peeling paint. Fisheries Bhd would obtain 'future economic benefits' after the repair. Explain the accounting treatment for the repair of the boat.

Reference no: EM132710829

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