Swans Plc constructed a building on a property already owned by the football club.Which of the following items should be included in determining the depreciable amount of the building?

Question

Quizplus · Accepted Answer

The depreciable amount of a building includes all costs necessary to bring the asset to its intended use, including direct costs (such as architects' fees) and indirect costs (such as interest during construction). Promotional expenses are not related to the construction of the building and should not be included in the depreciable amount. Therefore, the best choice would be (D) architect's fees and interest during construction.

Swans Plc Constructed a Building on a Property Already Owned