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A company which prepares financial statements to 30 June each year has the following general borrowings outstanding throughout the year to 30 June 20x4: 9%
A company which prepares financial statements to 30 June each year has the following general borrowings outstanding throughout the year to 30 June 20x4: 9% 7.5% Bank loan Bank loan 8.5% Loan stock 000 800 500 1,200 2,500 On 1 October 20x3, the company began construction of a qualifying asset and incurred expenditure of 300,000. A further 240,000 was spent on 1 February 20x4. Both of these amounts were financed out of general borrowings. Construction of the asset was still underway at 30 June 20x4. Calculate the amount of borrowing costs that should be capitalised as part of the cost of the qualifying asset during the year to 30 June 20x4
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