Papine Construction Limited acquired a loan for $60 million on 1 March 2020 to begin the construction of an apartment complex. The loan was acquired from National Commercial Bank at an effective interest rate of 10%. Construction did not begin on the bridge until, 1 May 2020. The company invested $30m of the funds received from the bank over the period 1 April to 31 August 2020 at an interest rate of 6%. During the of August 2020 construction on the project was suspended. REQUIRED: For the year ended 31 December 2020 show the following: 1. The Statement of Comprehensive Income Extract for the year (4 marks) 2. The Borrowing cost to be capitalized on the Statement of Financial Position (6 marks)

Papine Construction Limited acquired a loan for $60 million on 1 March 2020 to begin the construction of an apartment complex. The loan was acquired from National Commercial Bank at an effective interest rate of 10%. Construction did not begin on the bridge until, 1 May 2020. The company invested $30m of the funds received from the bank over the period 1 April to 31 August 2020 at an interest rate of 6%. During the of August 2020 construction on the project was suspended. REQUIRED: For the year ended 31 December 2020 show the following: 1. The Statement of Comprehensive Income Extract for the year (4 marks) 2. The Borrowing cost to be capitalized on the Statement of Financial Position (6 marks)