Total borrowings used for construction of an office building are Rs.30, 00000. Entityissued 8% debentures worth 10,00000 for this purpose and balance amount was utilized from its common pool including 10% bank loan of Rs.1000000 and 9.5% bank loan of Rs.1000000. What is the amount of borrowing cost to be capitalized?

Total borrowings used for construction of an office building are Rs.30

1.	Total borrowings used for construction of an office building are Rs.30, 00000. Entityissued 8% debentures worth 10,00000 for this purpose and balance amount was utilized from its common pool including 10% bank loan of Rs.1000000 and 9.5% bank loan of Rs.1000000. What is the amount of borrowing cost to be capitalized?
A.	275000
B.	300000
C.	250000
D.	265000
Answer» B. 300000