On 1 October 2019, 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 2019 but no construction took place between 1 December 2019 to 31 January 2020 due to employees taking industrial action. The asset was available for use on 30 September 2020 having a construction cost of $6m.What is the cost of the production equipment at 30 September 2020?
A$6,270,000?
B$6,330,000??? ??
C$5,016,000?
D$6,360,000
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