How much is the value of the plant at completion

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Reference no: EM132829345

Question - On January 2, 2020, Dalampasigan Company began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows:

January 2, 2020 P200,000

September 1, 2020 600,000

December 31, 2020 600,000

March 31, 2021 600,000

September 30, 2021 400,000

Dalampasigan borrowed P1,100,000 on a construction loan at 12% interest on January 2, 2020. This loan was outstanding during the construction period. The company also had P4,000,000 in 9% bonds outstanding in 2020 and 2021.

Required - How much is the value of the plant at completion?

Reference no: EM132829345

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