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Answer the question based on the question given in the picture above. tq KKK Co had following loans in place at the beginning at end
Answer the question based on the question given in the picture above. tq
KKK Co had following loans in place at the beginning at end of 2021. The 8.9% debanture was issued to fund the construction of a qualifying asset (a piece of mining equipment), construction of which began on 1 July 2021. On 1 January 2021, KKK Co began construction of a qualifying asset, a piece of machinery for a hydroelectric plant, using existing borrwings. Expenditure drawn down for the construction was: $30m on 1 January 2021 , $20m on 1 October 2021. Required Calculate the borrowing costs to be capitalised for the hydroelectric plant machineStep by Step Solution
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