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please do it correctly will upvote Problem 2 (9 marks) Early in 2020, Nickel Corporation engaged Dime Ltd. to design and construct a complete modernization
please do it correctly will upvote
Problem 2 (9 marks) Early in 2020, Nickel Corporation engaged Dime Ltd. to design and construct a complete modernization of Nickel's manufacturing facility. Construction began on June 1, 2020, and was completed on Decembe 31, 2020. Nickel made the following payments to Dime Ltd. during 2020: Date Payment $ 3,300,000 June 1, 2020 August 31, 2020 4,800,000 4,000,000 December 31, 2020 In order to help finance the construction, Nickel issued the following during 2020: 1. $2,000,000, ten-year, 9% bonds payable, issued at par on May 31, 2020, with interest payable annually on May 31, 2. 1,000,000 common shares, issued at $ 10 per share on October 1, 2020. Required a) Calculate the capitalization of borrowing costs? b) What is the final cost of the asset to be capitalizedStep by Step Solution
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