QUESTIONS 45 THROUGH 68 RELATE TO FINANCIAL STATEMENT ANALYSIS

64. - MOCK AND SAMPLE EXAMS CFA CFA LEVEL I MOCK EXAM AFTERNOON 2013 64. - MOCK AND SAMPLE EXAMS CFA CFA LEVEL I MOCK EXAM AFTERNOON 2013
MOCK AND SAMPLE EXAMS CFA CFA LEVEL I MOCK EXAM AFTERNOON 2013
64. On 1 January, a company, which prepares its financial statements according to IFRS, arranged financing for the construction of a new plant. The company:  borrowed NZ$5,000,000 at an interest rate of 8%,  issued NZ$5,000,000 of preferred shares with a cumulative dividend rate of 6%, and  temporarily invested NZ$2,000,000 of the loan proceeds for the first six months of construction and earned 7% on that amount. The amount of financing costs to be capitalized (NZ$) to the cost of the plant in the first year is closest to: A. 330,000. B. 400,000. C. 630,000.