Question: Question : WHAT AMOUNT IS CAPITALIZED BORROWING COST? Note: Please present the solution accurately in a good accounting form, Thank you. On January 'I, 2020,

Question: WHAT AMOUNT IS CAPITALIZED BORROWING COST?

Note: Please present the solution accurately in a good accounting form, Thank you.

On January 'I, 2020, Katrina Company obtained a loan of P4,000,000 at an interest rate of 10% specifically to finance the construction of its new Warehouse. Availments from the loan were made in equal amounts every quarter of the year. Total borrowing costs amounted to P550000. Prior to their disbursements, the proceeds of the loan were temporarily invested and earned interest insome amounting to P35,000. The warehouse was completed on December 31, 2020. What amount is capitalizable borrowing cost? * Your

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