Cardin has constructed an item of equipment whose eligible expenditure amounts to 5,200,000. It has capitalised 310,000 of borrowing costs in it. Case convention: straight-line depreciation over 20 years, with no residual value. Calculate the cost of the asset, then the annual depreciation charge.
- Eligible expenditure
- 5,200,000
- Capitalised borrowing costs
- 310,000
- Useful life
- 20