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GG Corp had the following loans outstanding during 2021 and 2022
Specific loan for construction @ 10% P 3,000,000
General borrowings @ 12% 25,000,000
The entity began the self-construction of a new building on Jan 1, 2021 and the building was completed on June 30, 2022
The following expenditure was made in 2021 and 2022:
Jan 1, 2021 P 4,500,000
April 1, 2021 5,000,000
Dec 1, 2021 3,000,000
March 1, 2022 6,000,000
Problem 1: how much the interest would be capitalized in 2021?
Problem 2: How much is the cost of the new building?
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