Jarmel incurred 5,480,000 of expenditure to bring a new investment property into service. This total includes 120,000 of start-up costs and 85,000 of operating losses incurred before the property reached the planned occupancy level. The remainder is directly attributable to the acquisition and construction (case assumption). Calculate the cost to be recognised as an asset.
- Total expenditure incurred
- 5,480,000
- Start-up costs
- 120,000
- Initial operating losses
- 85,000