Question

A company borrows ₹100 lakh at 10% interest to construct an asset over 2 years. It spends ₹60 lakh in Year 1. What borrowing cost is capitalized in Year 1?

A ₹12 lakh
B ₹10 lakh
C ₹8 lakh
D ₹5 lakh
E ₹6 lakh
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