Zelman Inc. borrowed $20$ million euros $()$ on January $2,$ Year $1,$ at an interest

rate of $10\%$ to finance the construction of its facility in Germany. The construction

is expected to take one year and cost $20$ million. Zelman invests the $20$ million

in a short$-$term fund and receives $100,000$ in interest for the first six months of

Year $1.$

During the first six months of Year $1,$ expenditures of $14$ million are incurred; the

weighted$-$average expenditures are $8$ million. Zelman will repay the borrowing

plus interest on December $31,$ Year $1,$ by converting U$.$S$.$ dollars into Euros.

The U$.$S$.$ dollar$/$Euro exchange rate was $$1\mathrm{.}20$ on January $2,$ Year $1,$ and $$1\mathrm{.}30$

on June $30,$ Year $1.$

Determine the borrowing costs $($in U$.$S$.$ dollars$)$ that Zelman should include in the

cost of the new facility at June $30,$ Year $1,$ under $(1)$ IFRS and $(2)$ U$.$S$.$ GAAP.