Brown Company constructed a building for its own use. Construction started on January 3, 2021 and the building was completed on December 31, 2021. Costs incurred during the year were as follows: January 1 - P400,000 April 1 - 500,000 August 1 - 480,000 December 1 - 180,000 To help finance the construction of the building, the company obtained a two-year, 10% loan of P800,000. Prior to the disbursement of the loan proceeds, it was temporarily invested and earned interest income of P12,000. During the year 2021, the company has also general borrowings as follows: 10% Notes Payable, due March 1, 2023 - P1,000,000 12% Notes Payable, due Dec. 31, 2024 - 1,500,000 How much interest is capitalized?
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Brown Company constructed a building for its own use. Construction started on January 3, 2021 and the building was completed on December 31, 2021. Costs incurred during the year were as follows: January 1 - P400,000 April 1 - 500,000 August 1 - 480,000 December 1 - 180,000 To help finance the construction of the building, the company obtained a two-year, 10% loan of P800,000. Prior to the disbursement of the loan proceeds, it was temporarily invested and earned interest income of P12,000. During the year 2021, the company has also general borrowings as follows: 10% Notes Payable, due March 1, 2023 - P1,000,000 12% Notes Payable, due Dec. 31, 2024 - 1,500,000 How much interest is capitalized?
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