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On 1 October 20X1, Bash Co borrowed $6m for a term of one year, exclusively to finance the construction of a new piece of production equipment. The interest rate on the loan is 6% and is Payable on maturity of the loan. The construction commenced on 1 November 20X1 but no construction took place between 1 December 20X1 to 31 January 20X2 due to employees taking Industrial action. The asset was available for use on 30 September 20X2 having a construction cost of $6m. What is the carrying amount of the production equipment in Bash Cos statement of financial position as at 30 September 20X2?

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    On 1 October 20X1, Bash Co borrowed $6m for a term of one year, exclusively to finance the construction of a new piece of production equipment. The interest rate on the loan is 6% and is Payable on maturity of the loan. The construction commenced on 1 November 20X1 but no construction took place between 1 December 20X1 to 31 January 20X2 due to employees taking Industrial action. The asset was available for use on 30 September 20X2 having a construction cost of $6m. What is the carrying amount

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