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5. How much borrowing costs are capitalized to the cost of the constructed building? * FOR ITEM# 5 On Jan 1, 2021, Mayumi Corp. obtained a 12%, Php6,000,000 loan, specifically to finance the construction of a building. The proceeds of the loan were temporarily invested and earned interest income of Php180,000. The construction was completed on Dec 31, 2021. a. 540,000 b. 480,000 c. 720,000 d. 0

5. How much borrowing costs are capitalized to the cost of the constructed building? * FOR ITEM# 5 On Jan 1, 2021, Mayumi Corp. obtained a 12%, Php6,000,000 loan, specifically to finance the construction of a building. The proceeds of the loan were temporarily invested and earned interest income of Php180,000. The construction was completed on Dec 31, 2021. a. 540,000 b. 480,000 c. 720,000 d. 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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This topic is about borrowing costs. Please choose the letter of the correct answer based on the picture.

5. How much borrowing costs are capitalized to the cost of the constructed building? * FOR ITEM# 5 On Jan 1, 2021, Mayumi Corp. obtained a 12%, Php6,000,000 loan, specifically to finance the construction of a building. The proceeds of the loan were temporarily invested and earned interest income of Php180,000. The construction was completed on Dec 31, 2021. a. 540,000 b. 480,000 c. 720,000 d. 0
Transcribed Image Text:5. How much borrowing costs are capitalized to the cost of the constructed building? * FOR ITEM# 5 On Jan 1, 2021, Mayumi Corp. obtained a 12%, Php6,000,000 loan, specifically to finance the construction of a building. The proceeds of the loan were temporarily invested and earned interest income of Php180,000. The construction was completed on Dec 31, 2021. a. 540,000 b. 480,000 c. 720,000 d. 0
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