Entity A is a local construction company, which provides construction services to different types of customers. To prepare for the company development, Entity A planned to set up a new factory to secure more stable future economic benefits. Entity A has two bank loans during the year 2023, they are: - A long-term bank loan: $6,152,000 of 4.25% - A short-term bank loan: $4,965,200 of 6.75% The construction of the new factory started from 1 February 2023 to 30 November 2023. Entity A spent expenditures of $1,265,000 or 1 March 2023 for the construction of the new factory. The end of the reporting period is 31 December. REQUIRED: Measure the capitalisation rate and the borrowing costs should be capitalised at the end of the reporting period of 2023. ANSWER: The capitalisation rate is %. The borrowing costs should be capitalised is $