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Problem 1: During 2020, BTS Inc constructed assets costing P30,000,000. The weighted- average accumulated expenditures on these assets during 2020 was P18,000,000. To help pay for construction, P13,200,000 was borrowed at 8% on January 1, 2020, and funds not needed for construction were temporarily invested in short-term securities, yielding P250,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a P15,000,000, 10-year, 8% note payable dated January 1, 2013. What is the amount of the interest capitalized for 2020?
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