8. On January 1, 2020 Ebasan Company took out a 12% P10,000,000 loan to finance the construction of a building. The key dates are as follows: Jan 1: Loan Interest relating to the project starts to be incurred Feb 1: Technical site planning commences Mar 1: Expenditures on the project start to be incurred Apr 1: Construction work commences Nov 1: Substantially all of the activities necessary to prepare the asset for its intended use are complete Dec 1: Building brought into use What amount of interest should Ebasan capitalize for the current year? A. 1,200,000 B. 1,000,000 C. 900,000 D 800.000

8. On January 1, 2020 Ebasan Company took out a 12% P10,000,000 loan to finance the construction of a building. The key dates are as follows: Jan 1: Loan Interest relating to the project starts to be incurred Feb 1: Technical site planning commences Mar 1: Expenditures on the project start to be incurred Apr 1: Construction work commences Nov 1: Substantially all of the activities necessary to prepare the asset for its intended use are complete Dec 1: Building brought into use What amount of interest should Ebasan capitalize for the current year? A. 1,200,000 B. 1,000,000 C. 900,000 D 800.000

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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