Gale plc had two bank loans outstanding for the whole of 2019: 1) $15 Million 9% secured loan repayable in 2022. 2) $24 Million 11% unsecured loan repayable in 2025. Gale plc commenced construction on a qualifying asset on 1 April 2019 and used $6 Million on that date to fund the construction process. The entity used a further $2 Million on 31 July 2019 for the same reason. 

How much borrowing costs must Gale plc capitalize in respect of this project in the year to 31 December 2019.

Answer rating: 100% (QA)

The loan is a General loan in the sense that only 8Million was used ... View the full answer