PINAUTANG started constructing a building for its own use in March 1, 2020 . PINAUTANG provided the
Question:
PINAUTANG started constructing a building for its own use in March 1, 2020. PINAUTANG provided the following information related to the construction:
Outstanding loans of the Company at January 1, 2020:
Interest Rate | Amount of loan | Interest Cost |
5% | P10,000,000 | P 500,000 |
10% | 20,000,000 | 2,000,000 |
Total | P30,000,000 | P2,500,000 |
On January 1, 2020, PINAUTANG also borrowed P3,000,000 at 15% per annum, to specifically fund its expected construction on March 1, 2020.
March 1, 2020 | P1,000,000 | February 1, 2021 | P3,000,000 |
May 31, 2020 | 8,000,000 | March 31, 2021 | 2,000,000 |
July 1, 2020 | 7,000,000 |
|
|
November 31,2020 | 4,000,000 |
|
|
December 31, 2020 | 1,000,000 |
|
|
How much is the total cost of the constructed asset as of December 31, 2020?
Group of answer choices23,950,000
22,133,060
21,944,217
22,152,467
Expert Answer:
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
