Answered: A man planned of building house. The…

A man planned of building house. The cost of construction is P500,000 while annual maintenance cost is estimated at P10,000. If the interest rate is 6%, what is the capitalized cost of the house?

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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A man planned of building house. The cost of construction is P500,000 while annual maintenance cost is estimated at P10,000. If the interest rate is 6%, what is the capitalized cost of the house?

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