Borrowing Costs::::Stremans Co

Hi Mike,

Need help on borrowing costs. the calculation part of it.
Here is the question:
On 1 January 20×6 Stremans Co Borrowed $1.5m to finance the production of two assests, both of which were expectedto take a year to build.
Work started during 20×6. The loan facility was drawn down and incurred on 1 January 20×6 and was utilized as follows, with the remaining funds invested temporarily

Asset A($000) Asset B($000)
1.1.20×6 250 500
1.7.20×6 250 500

The loan rate was 9% and Stremans co can invest surplus funds at 7%

Required: Ignoring compound interest, cacluate borrowing costs which may be capitalixed for each of the assets and consequently the cost of each asset as at 31/12/20×6

I have watched borrowing costs lecture on open tuition and practised the question in the video too.
I am trying to solve the question from bpp study text page 51 using the same style as suggested in the tutorial.

I have managed to do investment income, but not the borrowing costs.

Also what do we need to do with the remaining funds that were invested temporarily?I think we do not need to worry about that. Am i correct?
i tried calculating the borrowing cost on 1.5 million on 9% but it does not match with printed answers.

Thank you in advance for your help.