(v) Duggan Co began the construction of an item of property on 1 July 20X7 which was completed on 31 March
20X8. A cost of $32m was capitalised. This included $2·56m being a full 12 months’ interest on a $25·6m 10%
loan taken out specifically for this construction. On completion the property has a useful life of 20 years.
Duggan Co also recorded $0·4m in operating expenses representing depreciation on the asset for the period from
31 March 20X8 to 30 June 20X8.