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Question - GENSAN Company had the following borrowings during 2020. The borrowings were made for general purposes but the proceeds were used to finance the construction of a new building.
Principal
Interest
12% bank loan
P3,000,000
P360,000
14% long-term loan
5,000,000
700,000
The construction began on January 1, 2020 and was completed on December 31, 2020. Expenditures on the building were P2,000,000 on January 1, P2,000,000 on June 30 and P1,000,000 on December 31.
Required - What is the total cost of the building?
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