Question 3 Tarrega Limited, a large agricultural business, acquired new farmlands that they intended to plant with citrus varieties. Tarrega Limited paid R145 million to establish a processing plant on the farm. The plant was paid for with the issue of corporate debt at an annual rate of 12%. Tarrega Limited is obligated to restore the land at the end of twenty five years. It was estimated that restoration costs would total R15 million. A fair market interest rate is considered to be 13%. Tarrega Limited received the funding on 1 April 2019, building of the plant began on 1 July 2019 and work was completed on 31 December 2019. Required: Q.3.1 Calculate the borrowing cost eligible for capitalisation as at 31 December 2019. Q.3.2 Calculate the carrying amount of the plant as at 31 December 2019. Q.3.3 Given the information in Q.3.2, prepare the journal entry that Tarrega Limited would make to recognise the plant in its general ledger