Entity A has the following loan finance in place during the year: $2,560,000 of 7.50% loan finance $3,550,000 of 9.50% loan finance Entity A constructed a new factory which cost $5,655,000 and this...

Entity A has the following loan finance in place during the year:

• $2,560,000 of 7.50% loan finance


• $3,550,000 of 9.50% loan finance

Entity A constructed a new factory which cost $5,655,000 and this was funded out of the existing loan finance.

The factory took 9 months to complete within the same reporting year.

REQUIRED:

Measure the borrowing costs should be capitalised.

The borrowing costs should be capitalised is _________?