On 1 January 20X6, Stremans Co borrowed $1.5 million to finance the production of two assets, both of which were expected to take a year to build. Work started during 20X6. The loan facility was drawn down and incurred on 1 January 20X6, and was utilised as follows, with the remaining funds invested temporarily.

1 January 20X6

1 July 20X6

The loan rate was 9% and Stremans Co can invest surplus funds at 7%.

Asset Alpha

$'000

250

250

Asset Bravo

$'000

500

500

Required

Ignoring compound interest, calculate the borrowing costs that may be capitalized for each of the assets and consequently, the cost of each asset as at 31 December 20X6.