ABC Co acquired a building by paying P10M and assuming a P5 M mortgage on the building. How should ABC account for the mortgage?   capitalize and recognized as liability outright expense and recognized as liability capitalize only outright expense only

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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ABC Co acquired a building by paying P10M and assuming a P5 M mortgage on the building. How should ABC account for the mortgage?

 

capitalize and recognized as liability

outright expense and recognized as liability

capitalize only

outright expense only

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