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problem 1: A building contractor decides to construct an office building to be occupied by his own staff. Tangible non-current assets are initially measured at cost. Which TWO of the following expenses incurred by the building contractor cannot be included as a part of the cost of the office building?
A. Interest incurred on a specific loan taken out to pay for the construction of the new offices.
B. Direct building labor costs.
C. A proportion of the contractor's general administration costs.
D. Hire of plant and machinery for use on the office building site.
E. Additional design work caused by initial design errors.
F. Delivery costs in getting the raw onto site.
Group of answer choices
Option 1: E and F
Option 2: A and B
Option 3: C and E
Option 4: B and C
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