A company borrowed 7.5 million from local bank at interest rate of 10% on January 1 the construction also started at January 1 2019 . The company paid evenly 6 million from 1st march to December and no remaining loan were paid during the year. excess amount were invested at 6% return from July 2019 

what will be the amount of borrowing cost to be capitalized at Dec 2019 ?

Answer rating: 100% (QA)

Step 1 Calculate the weighted average borrowing cost Loan amount 75 million Interest rate ... View the full answer