Millennium Construction borrowed 50,000 on 1 July 2018 to construct a qualifying asset. The company has a year-end of 31 December 2018. The borrowings carry interest at 9 percent per annum. Expenditure of 45,000 was incurred on 1 July 2018 and the construction was still ongoing at 31 December 2018. Surplus funds were invested at 7 percent per annum. A What amount of borrowing costs should be capitalized by Millennium Construction (Ignore the effect of compounding in calculating interest for simplicity)? The amount of borrowing costs incurred for the year ended 31 December 2018 is Interest income of was earned on the investment of surplus funds. C B The amount of borrowing costs to be capitalized is, therefore, Fill in the boxes by dragging the correct option provided below and then click Submit. 2,000 2,250 B 175 200 Submit 2,075 2,250 A

Miltennium Construction borrowed 50,000 on 1 July 2018 to construct a qualifying asset The company has a yearend of 31 December 2018 . The borrowings carry interest at 9 percent per annum, Expenditure of 645,000 was incurred on 1 July 2018 and the construction was stil ongoingat 31 December 2018. Surplus funds were invested at 7 percent per annum. What amount of borrowing costs should be capitalized by Millennium Construction (lgnore the effect of compounding in calculating interest for simplicity)? The amount of borrowing costs incurred for the year ended 31 December 2018 is Interest income of was earned on the investment of surplus funds. The amount of borrowing costs to be capitalized is, therefore. Fill in the boxes by dragging the correct option provided below and then click submit