Meiji Company had the following outstanding loans during 2016 and 2017.

General loans:                                  

10,000,000                    10%

15,000,000                  12%

Specific construction loan: 5,000,000 10%

The entity began the construction of a new building on January 4, 2016 and the building was completed on June 30, 2017. The following expenditures were made:

January 4, 2016	5,000,000
March 31, 2016	3,000,000
August 31, 2016	7,000,000
December 1, 2016	5,000,000
February 28, 2017	4,000,000

Borrowing cost to be capitalized on December 31, 2016. For capitalization rate, if not exact, use this format (e.g. 14.21563%, use 14.22%)

Answer rating: 100% (QA)

Assuming accounting year is Jan to Dec 2016 Calculation o... View the full answer