IAS2

On 1 January 2016 Uba acquired goods for sale in the ordinary course of business for 105000$, including 5000$ refundable purchase taxes.The supplier usually sells goods on 30 days interest free credit.Howewer, as a special promotion, the purchase agreement for these goods provided for payment to be made in full on 31 December 2016. In acquring the goods carriage costs of 2000$ were incurred: these were due on 31 January 2016.Uba’s cost of capital is 10% per annum.

At what amount should Uba measure the cost of these goods (to the nearest $00)?
The answer is $92900

In this question “cost of capital is 10% per annum” means “capital expenditure? ?