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Please show working! Ivanhoe Ltd. is constructing a building. Construction began on February 1 and was completed on December 31 . Expenditures were HK$1,443,750 on
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Ivanhoe Ltd. is constructing a building. Construction began on February 1 and was completed on December 31 . Expenditures were HK$1,443,750 on March 1,HK$963,000 on June 1 , and HK$2,400,750 on December 31. Ivanhoe Ltd. had outstanding all year a 10\%, 5-year, HK$3,280,000 note payable and an 11%, 4-year, HK$2,870,000 note payable. Determine the amount of borrowing cost that Ivanhoe Ltd. would capitalize. Use the capitalization rate used for borrowing cost capitalization purposes. (Round "Capitalization rate" to 2 decimal places, e.g. 2.51 and final answer to 0 decimal places, e.g. 5,275.) Borrowing cost capitalization HK$Step by Step Solution
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