Arabtec Company decided to construct a tunnel that will link two sides of Fujairah. The company has been in this project for a couple of years The tunnel would take two years to build and the total capital outlay needed for the construction would be not less than $20 million. To allow itself a margin of safety, the company borrowed $22 million from three sources and used the extra $2 million for its working capital purposes. Financing was arranged in this way: Bank term loans: $5 million at 7% per annum Institutional borrowings: $7 million at 8% per annum Corporate bonds: $10 million at 9% per annum In the first phase of the construction of the tunnel, there were idle funds of $10 million, which the MNC invested for a period of six months. Income from this investment was $500,000. Required When the company capitalizes borrowing costs under IAS 23: a. How would it treat the borrowing costs? b. Calculate the borrowing costs to be capitalized. c. How will the investment income be treated