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King Konstruction Ltd will construct an oil rig during its current financial year ended 30 addition to the existing finance facilities already obtained by the
King Konstruction Ltd will construct an oil rig during its current financial year ended 30 addition to the existing finance facilities already obtained by the entity. The Manager at King Konstruction Lo22 and was completed on 30 June 2023. The Financial of borrowing costs that can be capitalires your assistance to determine the amount Details regarding certain payments relatinn t... A specific loan for the R12 000000 was negotiated with Green Bank and obtained on 1 July 2022 at a rate of 8.5% per annum. Any surplus funds regarding the specific loan were reinvested at another bank, Blue Bank at 7.2% per annum. King Konstruction Ltd also had general borrowings as follows: During March 2023, heavy winter rains resulted in the construction being halted for the entire month. Assist the Financial Manager of King Konstruction Ltd to calculate the amount of net borrowing costs that should be capitalised in terms of IAS 23 to the cost of the oil rig plant where costs relating to the construction were paid for using the following: 4.1 Only the specific loan 4.2 Only the existing general loans (14 marks) (14 marks) Ignore all taxation. Round of rates and monetary amounts to two decimal places
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