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. Gilbert took out a $7.5 million 10% loan on 1 January 20X6 to build a new warehouse during the year. Construction of the
. Gilbert took out a $7.5 million 10% loan on 1 January 20X6 to build a new warehouse during the year. Construction of the warehouse began on 1 February 20X6 and was completed on 30 November 20X6. As not all the funds were needed immediately, Gilbert invested $2 million in 4.5% bonds from 1 January to 1 May 20X6. What are the total borrowing costs to be capitalised in respect of the warehouse?
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Business Statistics A Decision Making Approach
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
9th Edition
013302184X, 978-0133021844
