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What is the capitalizable borrowing cost

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Question - Akira Company had the following loans outstanding for 2018.

Specific construction loan - 1,000,000 - 10%

General loan - 20,000,000 - 12%

The entity began the self-construction of a building on January 1 2020 and the building was completed on December 31 2020. The following expenditure was made during the year:

January 1 - 1,000,000

July 1 - 2,000,000

November - 3,000,000

Required -

1. What is the capitalizable borrowing cost?

2. What is the cost of the new building?

3. What is the interest expense for 2020?

Reference no: EM132514251

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