On 1 January 2018, GP LLC, raised funds, specifically to finance the construction of a new factory, a qualifying asset as per IAS 23, for 100 million USD from a bank at interest rate of 5% per annum for 10 years. The entity commenced construction on 1 February 2018 and incurred expenditure of $2,500,000 at the first of each month from February to December 2018 with a monthly increase of 20% per month. From September 1 to October 31 the entity suspended the construction due to labor strikes and shortage of materials. Construction resumed on November 1 along with the monthly cost increase of 20% per month. The building was completed and ready for use on 30 November 2018. The proceeds from specific borrowing were temporarily invested in March 2018 and generated interest income of 1.8 million USD.

Required:

Calculate the net borrowing cost that shall be capitalized as part of the cost of the new building and the net finance cost that shall be reported in the statement of profit or loss for the year ended 31 December 2018 (show journal entries).