Lucas is building a logistics platform. It paid 3,200,000 in cash and assumed interest-bearing liabilities of 300,000; it received a grant related to the asset of 700,000. Case convention: a specific borrowing finances exactly the eligible expenditure, at 5 % a year, for 6 months. Calculate the eligible expenditure, then the borrowing costs eligible for capitalisation.
- Cash paid
- 3,200,000
- Interest-bearing liabilities assumed
- 300,000
- Asset grant received
- 700,000
- Annual interest rate
- 5 %
- Financing period
- 6