Question: Pronghorn Ltd . is constructing a building. Construction began on February 1 and was completed on December 3 1 . Expenditures were HK $

Pronghorn Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK\$1,530,000 on March 1, HK\$1,032,000 on June 1, and HK\$2,418,000 on December 31.
Pronghorn Ltd. had outstanding all year a 10\%,5-year, HK\$5,120,000 note payable and an 11\%,4-year, HK\$4,480,000 note payable. Determine the amount of borrowing cost that Pronghorn Ltd. would capitalize. Use the capitalization rate used for borrowing cost capitalization purposes. (Round "Capitalization rate" to 2 decimal places, e.g.2.51 and final answer to 0 decimal places, e.g.5,275.)
Borrowing cost capitalization HK\$
Pronghorn Ltd . is constructing a building.

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