Brisac drew a loan of 3,000,000 on 1 March, dedicated to the construction of a plant, at an effective interest rate of 6 % a year. Expenditure, borrowing costs and preparation activities all begin the same day (case data) and the year ends on 31 December, that is 10 months. No funds are temporarily invested. Calculate the borrowing costs eligible for capitalisation for the year.
- Specific borrowing
- 3,000,000
- Annual effective interest rate
- 6 %
- Time to the reporting date
- 10