Reference no: EM132894068

Guava Company, a major winery, started a construction of a new facility in Mindanao. The following costs are incurred in conjunction with the startup activities of the new facility:

Production equipment 8,150,000
Travel costs of salaried employees 400,000
License fee 140,000
Training of local employees for production and maintenance operations 1,200,000
Advertising costs 850,000

Problem 1: What portion of the organization costs will be expensed?

a) P1,390,000
b) P1,600,000
c) P2,450,000
d) P2,590,000
e) answer not given