ON 1 JANUARY, A COMPANY, WHICH PREPARES ITS FINANCIAL STATEMENTS A...

30. 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  During the first year of construction the company was able to temporarily invest NZ$2,000,000 of the loan proceeds for the first six months and earned 7% on that amount. The amount of financing costs to be capitalized (NZS) to the cost of the plant in the first years is closest to: A. 330,000. B. 400,000. C. 630,000.