42. How much is capitalized cost of borrowing?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:In 2021, STA. LUCIA Corporation incurred the following expenses for building construction:
P3, 000, 000
200, 000
30, 000, 000
15, 000, 000
6.000, 000
P54, 200, 000
1/2/2021
1/3/2021
2/1/2021
4/1/2021
Б/30/2021
Paid for excavation
Paid architect
1" payment to contractor
2d payment to contractor
Final payment to contractor
Total
STA. LUCIA did not get any specific borrowing. Its general borrowings are as follows:
| 8%, Notes Payable
| 9%, Notes payable
Total
P40, 000, 000
30, 000, 000
P70, 000, 000
42. How much is capitalized cost of borrowing?
a. P1, 295, 196
b. P1, 504, 577
c. P2, 590, 392
d. P3, 009, 153
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