Question 1 [lAS23- Capitalisation of borrowing costs] (20) Gled Limited began the construction of a new building on 1 February 2015. The building is a qualifying asset for the purposes of IAS23. Construction costs incurred in 2015 were paid as follows; Payment Date Amount On 1 February R500 000 On 1 July R600 000 On 1 November R800 000 The construction of the building ended on 1 December 2015 when the building was complete and ready for its intended use. This building is to be depreciated over 10 years to a nil residual value using the straightline method. The construction was financed through a loan of R1 900 000 from Cash Limited. The loan was raised on 1 January 2015 specifically to facilitate the construction of the building. The interest rate is 25% per annum. There are no capital repayments during the year. Surplus funds were invested at 20% per annum. The interest is compounded annually. Required ( anulate the total interest incurred and total borrowing costs that must be capitalised during the-year onded 04 December 2045 (10) (b) Calculate the depreciation for the year ended 31 December 2015