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Chae Company decided to construct a building to expand its operations. The entity decided to...

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Accounting

Chae Company decided to construct a building to expand its operations. The entity decided to obtain a 5-year loan from Eastwest Bank for $10,000,000 at 12% on December 31, 2019, to finance the construction of the building. The construction started on January 2, 2020 and was completed on December 31 of the same year. The following payments were made: January 2 - $1,500,000, April 1 - $2,000,000, June 1 - $2,100,000, October 1 - $1,700,000, December 1 - $2,200,000. What amount of borrowing cost shall be capitalized?

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