On 1 January 2019 Stremans Co. borrowed GHc 1.5 million at a rate of 8% to finance the production of two assets, both of which were expected to take a year to build. Work started during 2019. The loan facility was drawn down and incurred on 1 January 2019, and was utilized as follows, with the remaining funds invested temporarily at a rate of 3% during the accounting period before these funds were required for spending.                                           Asset A      Asset B                                          Ghc 000     Ghc 000 1 January 2019                   250              500 1 July 2019                         150             300 1 November 2019             100              200                             Required i. Calculate the borrowing cost eligible for capitalization for each qualifying asset  ii. Calculate the cost of each asset as at 31 December 2019.

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On 1 January 2019 Stremans Co. borrowed GHc 1.5 million at a rate of 8%
to finance the production of two assets, both of which were expected to take
a year to build. Work started during 2019. The loan facility was drawn down
and incurred on 1 January 2019, and was utilized as follows, with the
remaining funds invested temporarily at a rate of 3% during the accounting
period before these funds were required for spending.

                                          Asset A      Asset B
                                         Ghc 000     Ghc 000
1 January 2019                   250              500
1 July 2019                         150             300
1 November 2019             100              200                            
Required
i. Calculate the borrowing cost eligible for capitalization for each qualifying
asset 
ii. Calculate the cost of each asset as at 31 December 2019. 

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