Detailed answer please. I will rate.

Problem 3 Soho Inc. is a publicly traded company. Soho started the construction of a new office building on Feb 1, 2021 and will finished it on April 30, 2022. The following information is related to the expenditures incurred during the construction in 2021: Date Feb 28 June 1 Sep 30 Expense $450,000 320,000 180,000 Soho took out a one-year loan of $850,000 on May 1, 2021. The loan has an annual interest rate of 4.5% Soho's overall borrowings are as follows: Amount Annual interest rate A three-year Note payable, issued on May 1, 2020 $350,000 5% A two-year bank loan taken out on April 1, 2019 430,000 6% A on-year bank loan taken out on September 30, 2021 220000 2.5% Required- Calculate the borrowing cost that Soho should capitalize in 2021? Problem 3 Soho Inc. is a publicly traded company. Soho started the construction of a new office building on Feb 1, 2021 and will finished it on April 30, 2022. The following information is related to the expenditures incurred during the construction in 2021: Date Feb 28 June 1 Sep 30 Expense $450,000 320,000 180,000 Soho took out a one-year loan of $850,000 on May 1, 2021. The loan has an annual interest rate of 4.5% Soho's overall borrowings are as follows: Amount Annual interest rate A three-year Note payable, issued on May 1, 2020 $350,000 5% A two-year bank loan taken out on April 1, 2019 430,000 6% A on-year bank loan taken out on September 30, 2021 220000 2.5% Required- Calculate the borrowing cost that Soho should capitalize in 2021