Problem 3 The Barney Corporation, a publically accountable entity, placed an order for an oil tanker on February 1, 20x5. The shipyard required a downpayment of $10 million. Additional payments on the tanker are as follows: April 1, 20x5 June 1, 20x5 October 15, 20x5 November 30, 20x5 $4,000,000 8,000,000 3,000,000 25,000,000 The tanker was delivered and placed in service on November 30, 20x5. Barney borrowed $15,000,000 on February 2, 20x5 to make the down payment at a rate of 6%. This loan was paid off on November 30, 20x5 The company's general borrowings are as follows: Interest Rate 4% 6% Amount Bank Loan 1 Bank Loan 2 Bank Loan 3 $20,000,000 50,000,000 40,000,000 3.5% Bank Loan 2 was paid off on August 31, 20x5. Bank Loan 3 was taken out on May 31, 20x5. Calculate the amount of borrowing costs that have to be capitalized to the tanker