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apitalization of interest during 2021 amounted to P 23,600,000. The existing debt of Colorado are the following: From Union Bank (specific borrowing), P 3,600,000, 10% From Land Bank (general borrowing), P 6,000,000, 20% From Security Bank (general borrowing), P 10,000,000, 18% What is the capitalized borrowing costs for the year ended December 31, 2021?  A. 4,110,000 B. 3,750,000 C. 3,788,000 D. 3,360,000 What is the interest expense for the year ended December 31, 2021?  A. 322,000 B. 390,000 C. 750,000 D. 0

apitalization of interest during 2021 amounted to P 23,600,000. The existing debt of Colorado are the following: From Union Bank (specific borrowing), P 3,600,000, 10% From Land Bank (general borrowing), P 6,000,000, 20% From Security Bank (general borrowing), P 10,000,000, 18% What is the capitalized borrowing costs for the year ended December 31, 2021?  A. 4,110,000 B. 3,750,000 C. 3,788,000 D. 3,360,000 What is the interest expense for the year ended December 31, 2021?  A. 322,000 B. 390,000 C. 750,000 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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During 2021, Colorado Company constructed a 3-storey building. The weighted average expenditures for capitalization of interest during 2021 amounted to P 23,600,000. The existing debt of Colorado are the following:

From Union Bank (specific borrowing), P 3,600,000, 10%

From Land Bank (general borrowing), P 6,000,000, 20%

From Security Bank (general borrowing), P 10,000,000, 18%

What is the capitalized borrowing costs for the year ended December 31, 2021? 

A. 4,110,000

B. 3,750,000

C. 3,788,000

D. 3,360,000

What is the interest expense for the year ended December 31, 2021? 

A. 322,000

B. 390,000

C. 750,000

D. 0

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