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Monty Furniture started construction of a cointination offce and warehouse building forits own use at an estimated cost of 4,320,000 on January 1.2022. Monty expected
Monty Furniture started construction of a cointination offce and warehouse building forits own use at an estimated cost of 4,320,000 on January 1.2022. Monty expected to complete the huilding by December 31, 2022. Monty has the following debt: obligations outstanding daring the construction period. Construction loan-12\% interest, payable semiannually, bsued Docember 31,2021 Short-term loan-10N, interest, payable monthy, and principal payatle at maturity on May 30.2023 1406,000 Long-term loan-11\% interest, payable on January 1 of each year, Principal payable on January 1,2026 B80,000 (a) Assume that Monty completed the office and warehouse building on December 31.2022, is planned at a total coct of e4 576000. The following expenditures were made durine the period forthis project: January 1. 6880,000 , April 1, 1,230,000; : 1 ily 1. E1.680.000: and October 1, E.580.000. Excess funds from the construction isans were invested during the period and earred E19,200 of irvestment income. Compute the 3moant of borrowirg costs to be capitallzed for this project. (the intereit rates rounded to 2 decimal ploces, es. 7.585 for computational purposer and round final answers to 0 decimal ploces, eze 5,275 . Borrowing costs
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