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What is the capitalize 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 were made during the year:

January 1 1,000,000

July 1 2,000,000

November 1 3,000,000

Required -

1. What is the capitalize borrowing cost?

2. What is the cost of the new building?

3. What is the interest expense for 2020?

Reference no: EM132965247

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