Question: do not need steps, only want to know the answer DDD Co has borrowed $15,120,000 to finance the building of a warehouse (the project). Construction

do not need steps, only want to know the answer

DDD Co has borrowed $15,120,000 to finance the building of a warehouse (the project). Construction is expected to take two years. The loan was drawn down on 1 May 2020 and work began on 1 May 2020. $4 million of the loan was not utilised until 1 July 2020 so DDD Co was able to invest it until needed. DDD Co is paying 10% on the loan and can invest surplus funds at 6% for a return Calculate the borrowing costs to be capitalised for the year ended 31 December 2020 in respect of this project (5%) O A $1,088,000 B. None of the options C$1,129,600 D. $888.000 E $968,000 OOOOO

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