Examine how will you capitalise the interest, when qualifying assets are funded by borrowings in the nature of bonds that are issued at discount.

Y Ltd$.$ issued at the start of year $1,10\%($interest paid annually and having maturity period of $4$ years$)$ bonds with a face value of $2,00,000$ at a discount of $10\%$ to finance a qualifying asset which is ready for intended use at the end of year $2.$

Compute the amount of borrowing costs to be capitalized if the company amortizes discount using Effective Interest Rate method by applying $13\mathrm{.}39\%$ p$.$a$.$ of EIR.