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What the amount of capitalizable borrowing costs is

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On January 1, 2020, ABC Company obtained a loan of P 4,000,000 at an interest rate of 10% specifically to finance the construction of its new building. Availments from the loan were made quarterly in unequal amounts. Total borrowing cost amounted to P 250,000. Prior to their disbursements, the proceeds of the loan were temporarily invested and earned interest income amounting to P 40,000. The building was completed on December 31, 2020.

Question 1: The amount of capitalizable borrowing costs is

Reference no: EM132811737

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