Marsac's plant, whose construction expenditure amounts to 12,000,000, is financed in part by a specific loan of 6,000,000 at 6 % a year, drawn on 1 January. Substantially all the preparation activities are complete on 31 October. The year ends on 31 December: 10 months of capitalisation, then 2 months after completion. No funds are temporarily invested. Calculate the borrowing costs capitalised, those expensed, then the cost of the asset.
- Construction expenditure
- 12,000,000
- Specific loan
- 6,000,000
- Annual interest rate
- 6 %
- Months until completion
- 10
- Months after completion
- 2