$($Capitalization of Borrowing Costs$)$ The following three situations involve the capitalization of borrowing costs for public companies following IFRS.

Situation $1$

On January $1,2023,$ Oksana Inc. signed a fixed$-$price contract to have Builder Associates construct a major head office facility at a cost of $$4$ million. It was estimated that it would take three years to complete the project. Also, on January $1,2023,$ to finance the construction cost, Oksana borrowed $$4$ million that is repayable in $10$ annual instalments of $$400,000,$ plus interest at the rate of $10\%.$ During $2023,$ Oksana made deposit and progress payments totalling $$1\mathrm{.}5$ million under the contract; the weighted average amount of accumulated expenditures was $$800,000$ for the year. The excess amount of borrowed funds was invested in short$-$term securities$,$ from which Oksana realized investment income of $$25,000.$

Situation $2$

During $2023,$ Midori Ito Corporation constructed and manufactured certain assets and incurred the following borrowing costs in connection with these activities:

Borrowing Costs Incurred

Warehouse constructed for Midori Ito$$s own use $$ $$30,000$

Special$-$order machine for sale to unrelated customer, produced according to customer$$s specifications $9,000$

Inventories routinely manufactured, produced on a repetitive basis, that require many months to complete $8,000$

Situation $3$

Fleming Inc. has a fiscal year ending April $30.$ On May $1,2023,$ Fleming borrowed $$10$ million at $11\%$ to finance construction of its own building. Repayments of the loan are to begin the month after the building$$s completion. During the year ended April $30,2024,$ expenditures for the partially completed structure totalled $$7$ million. These expenditures were incurred evenly throughout the year. Interest that was earned on the part of the loan that was not expended amounted to $$450,000$ for the year.

Instructions

a$)$ For situation $1,$ what amount should Oksana report as capitalized borrowing costs at December $31,2023?$

b$)$ For situation $2,$ assuming the effect of capitalization of borrowing costs is material, what is the total amount of borrowing costs to be capitalized?

c$)$ For situation $3,$ how much should be shown as capitalized borrowing costs on Fleming$$s financial statements at April $30,2024?$