Verdier puts into service a production line whose construction expenditure is 8,700,000 and in which 540,000 of borrowing costs have been capitalised. Case convention: straight-line depreciation over 12 years, with no residual value. Record the entry for the annual depreciation charge.
- Construction expenditure
- 8,700,000
- Capitalised borrowing costs
- 540,000
- Useful life
- 12