alleryStart learning →Formula gives Rs 70,000; actual cost incurred is Rs 50,000. Capitalise?
ARs 70,000
BRs 60,000
CRs 50,000
DRs 20,000
Answer & Solution
Correct answer: C. Rs 50,000
Capitalised borrowing costs can never exceed the costs actually incurred in the period, so the cap of 50,000 applies.
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