Canadian Accounting:

On June 30, 20x6, the Clementi Corporation, a publicly accountable entity began constructing an asset. Construction continued through September 30, 20x7 when the asset was available for use. Costs incurred in the construction of the asset are as follows:

June 30, 20x6	$300,000
October 31, 20x6	200,000
February 28, 20x7	150,000
April 30, 20x7	250,000
August 31, 20x7	400,000

Clementi has a December 31 year-end. The companys general borrowing for the years ended December 31, 20x6 and 20x7 are as follows:

	Dec 31, 20x6	Dec 31, 20x7
Line of credit, 6% in 20x6 and 5.5% in 20x7	$10,000,000	$15,000,000
Bank Loan, 4%	20,000,000	16,000,000
Bonds payable, 5%	50,000,000	50,000,000

Required

Assuming that the asset is a qualifying asset for purposes of capitalization of borrowing costs, calculate the total cost of the asset as at September 30, 20x7.

Note that you will first have to calculate the cost of the asset as at December 31, 20x6. The balance at Dec 31, 20x6 (including any borrowing costs capitalized) then gets carried forward to 20x7 and becomes the opening balance at Jan 1, 20x7.