How much is the total capitalizable cost as of Dec

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Question - On Jan. 1, 2020, the entity started the preparation of its building construction. On the same date, it specifically acquired a loan for the construction.

The entity spent 3,000,000 on Jan. 1, 2020 and 5,000,000 on Mar. 31, 2021.

The loan has a principal amount of 10,000,000, interest of 5% due every Jan. 1, maturity date of Jan. 1, 2023, net proceeds of 9,732,700, and an effective interest rate of 6%. While not yet paid out for the construction, the amount borrowed was temporarily invested. Investment income for the two years totaled 480,000. How much is the total capitalizable cost as of Dec. 31, 2021?

Reference no: EM132925577

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