Use the information for Brent Hill Company from BE 10-21 and BE10-22. Calculate the company's avoidable borrowing costs assuming Brent Hill Company follows IFRS. How would your answer change if the company followed ASPE?
Brent Hill Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1.5 million on March 1, $ 1.2 million on June I, and $3 million on December 31. Calculate Brent Hill's weighted-average accumulated expenditures that would be used for capitalization of borrowing costs.