Solution-What amount of interest is capitalized as cost

What amount of interest is capitalized as cost

Reference no: EM132615631

Problem - During 2019, an entity constructed a new building at a cost of P30,000,000. The expenditures for the building, which was finished late in 2019, were incurred evenly during the year. The entity had the following loans outstanding on December 31, 2019:

10% note to finance specifically construction of the building, dated January 1, 2019, P10,090,090 and unpaid on December 31, 2019. Investments were made on the proceeds from the loan and income of P100,000 was realized in 2019.

12% 20-year bonds payable issued at face amount on April 30, 2018, P30,000,000.

8% 5-year note payable, dated March 1, 2018, P10,000,000.

Required - What amount of interest is capitalized as cost of the new building?

Reference no: EM132615631

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What amount of interest is capitalized as cost

Reference no: EM132615631

Reference no: EM132615631

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