PLEASE HELP US ANSWER THANK YOU!

PINAUTANG started constructing a building for its own use in January 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

15% P10,000,000 P 1,500,000

5% 30,000,000 1,500,000

Total P40,000,000 P3,000,000

On January 1, 2020, PINAUTANG also borrowed P5,000,000 at 12% per annum, to specifically fund its expected construction on March 1, 2020.

January 1, 2020 P1,000,000

May 31, 2020 3,000,000

July 1, 2020 8,000,000

November 31,2020 6,000,000

December 31, 2020 2,000,000

REQUIREMENTS:

1. How much is the total cost of the constructed asset as of December 31, 2020?

2. The amount of interest expense taken to profit or loss for 2020 is?