Quenelle has a general borrowing of 3,000,000 (costs for the year: 210,000). In addition, a specific borrowing of 2,000,000, taken out for an asset completed before the start of the year, remains outstanding all year (costs for the year: 100,000). Calculate the capitalisation rate for general borrowings for the year, allowing for the treatment of the specific borrowing still outstanding.
- General borrowing
- 3,000,000
- Costs of the general borrowing
- 210,000
- Specific borrowing still outstanding
- 2,000,000
- Costs of the specific borrowing
- 100,000