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19 On December 31, 2021, Bridgeport Group borrowed HK$3,480,000 at 12% payable annually to finance the construction of a new building. In 2022, the company
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On December 31, 2021, Bridgeport Group borrowed HK$3,480,000 at 12% payable annually to finance the construction of a new building. In 2022, the company made the following expenditures related to this building: March 1. HK$417,600, June 1. HK$696,000; July 1. HK$1,740,000, December 1, HK$1,392,000. Additional information is provided as follows. 1. Other debt outstanding 10-year, 13% bond, December 31, 2015, interest payable annually 6-year, 10% note, dated December 31, 2019. Interest payable annually March 1, 2022, expenditure included land costs of HK$174,000 Interest revenue earned in 2022 on funds related to specific borrowing HK$4,640,000 HK$1,856,000 2 3. HK$56,840 (a) Determine the amount of borrowing cost to be capitalized in 2022 in relation to the construction of the building. (Round answer to O decimal places, s.5,275.) The amount of borrowing cost HKS Step by Step Solution
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