Q9 Delta Force Ltd borrowed US$1 million to finance the construction of an airplane. The first progress payment made to a contractor is for only part of that amount borrowed, and the remaining amount was invested in short-term bank deposits until the next payment due. How do we determine the borrowing cost to be capitalized? Select the one correct option and then click Submit. The borrowing cost to be capitalized is the actual borrowing cost incurred on US$1 million borrowing. The borrowing cost to be capitalized is the actual borrowing cost incurred on the first progress payment only. The borrowing cost to be capitalized is the deemed borrowing cost in respect of the expenditure on all qualifying assets. _____3 The borrowing cost to be capitalized is the actual borrowing cost incurred less interest income from the temporary investment. qu 50

Delta Force Ltd borrowed US\$1 million to finance the construction of an airplane. The first progress payment made to a contractor is for only part of that amount borrowed, and the remainitig amount was invested in short-term bank deposits until the next payment due. How do we determine the borrowing cost to be capitalized? Select the one correct option and then click Submit. The borrowing cost to be capitalized is the actual borrowing cost incurred on USS1 million borrowing. The borrowing cost to be capitalized is the actual borrowing cost incurred on the first progress payment only. The borrowing cost to be capitalized is the deemed borrowing cost in respect of the expenditure on all qualifying assets