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14-05-2024
Business

Answered

Richfield acquired a special loan of R1 000 000 on 1 January 2024 for a qualifying asset at a nominal interest rate of 10% per year payable annually in arrears. The market-related interest rate at the date of obtaining the loan was 13%. The loan is repayable after 10 years. The company's financial year ends on 31 December. Tax rate is 30%. REQUIRED
Calculate the borrowing costs that can be capitalised for the year ending 31 December 2024

Answer :

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