Medical-Solution (Pty) Ltd started with the construction of a new manufacturing plant on 1 July 2019. The total estimated construction costs amount to P4 000 000 and it is estimated that the construction will take two years before the plant will be ready for use. The new manufacturing plant is a qualifying asset in terms of IAS 23, Borrowing costs. The construction costs will be funded with a long-term loan facility from ABSA Bank. ABSA Bank will advance the funds to Medical-Solution as the costs are incurred. The loan facility will bear interest at 15% per annum and the interest is compounded at the end of each month. The capital and interest on the loan facility will be repaid to ABSA Bank in one payment on 30 June 2021. The construction costs were incurred at the beginning of each month and were only then withdrawn from the loan facility. Until 31 December 2019, the expenses were as follows: Date incurred 1 July 2019 1 August 2019 1 September 2019 1 October 2019 1 November 2019. 1 December 2019 Total P 400 000 P 200 000 P 300 000 P 150 000 P 250 000 P 100 000 P 1 400 000 Calculate the borrowing costs (interest) to be capitalised in respect of the construction of the new manufacturing plant for the year ended 31 December 2019 in terms of IAS 23, Borrowing costs ? What will be the carrying amount of Property, plant and equipment as at 31 December 2019