BTS Inc. started construction of a building for its own use on January 1, 2021. Upon completion at December 31, 2021, construction costs totaled P2,150,000, which were incurred evenly during the construction period. Prior to the start of construction, Jules Company obtained a P1,000,000, 12%, 5-year loan from ABC Bank to finance the project. During periods that construction costs were low, the company temporarily investment the proceeds and earned interest income of P5,000. In addition to the specific borrowing, prior to the construction, the company had a general borrowing amounting to P60,000 with interest of 15% and a four-year term that was used in part in the self construction? How much is the capitalized interest on the self-constructed building of BTS Inc?
BTS Inc. started construction of a building for its own use on January 1, 2021. Upon completion at December 31, 2021, construction costs totaled P2,150,000, which were incurred evenly during the construction period. Prior to the start of construction, Jules Company obtained a P1,000,000, 12%, 5-year loan from ABC Bank to finance the project. During periods that construction costs were low, the company temporarily investment the proceeds and earned interest income of P5,000. In addition to the specific borrowing, prior to the construction, the company had a general borrowing amounting to P60,000 with interest of 15% and a four-year term that was used in part in the self construction?
How much is the capitalized interest on the self-constructed building of BTS Inc?
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