Question: 16 Bridgeport Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$1,518,750 on March 1, HK$1,023,000

Bridgeport Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$1,518,750 on March 1, HK$1,023,000 on June 1, and HK$2,415,750 on December 31. Bridgeport Ltd. had outstanding all year a 8%, 5-year, HK$4,880,000 note payable and an 9%, 4-year, HK$4,270,000 note payable. Determine the amount of borrowing cost that Bridgeport Ltd. would capitalize. Use the capitalization rate used for borrowing cost capitalization purposes. (Round "Capltalization rate" to 2 decimal places, eg. 2.51 and final answer to decimal places, eg. 5275) Borrowing cost capitalization HK$

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