Question
Metlock Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$1,496,250 on March 1, HK$1,005,000 on
Metlock Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$1,496,250 on March 1, HK$1,005,000 on June 1, and HK$2,411,250 on December 31. Metlock Ltd. had outstanding all year a 8%, 5-year, HK$4,400,000 note payable and an 9%, 4-year, HK$3,850,000 note payable. Determine the amount of borrowing cost that Metlock Ltd. would capitalize. Use the capitalization rate used for borrowing cost capitalization purposes. (Round "Capitalization rate" to 2 decimal places, e.g. 2.51 and final answer to 0 decimal places, e.g. 5,275.)
Borrowing cost capitalization | HK$ = ??? |
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