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Whispering Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$1,946250 on March 1, HK$1,005,000 on
Whispering Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$1,946250 on March 1, HK$1,005,000 on June 1, and HK$2,411,250 on December 31.
Whispering Ltd. had outstanding all year a 8%, 5-year, HK$4,400,000 note payable and on 9%, 4-year, HK$3,850,000 note payable. Determine the amount of borrowing cost that Whispering Ltd. would capitalize. Use the capitalization rate used for borrowing cost capitalization purpose.
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