During 2021, Tiktok Company constructed various assets. The weighted average expenditures for capitalization of interest during 2021 amounted to P 5,600,000. The entity had the following debt outstanding at December 31, 2021: • From BPI (specific borrowing), P 3,600,000, 10% • From BDO (general borrowing), P 4,000,000, 12% • From PNB (general borrowing), P 2,000,000, 9% QUESTION 1: What is the capitalized borrowing costs for the year ended December 31, 2021? QUESTION 2 What is the interest expense for the year ended December 31, 2021? I Select 1
During 2021, Tiktok Company constructed various assets. The weighted average expenditures for capitalization of interest during 2021 amounted to P 5,600,000. The entity had the following debt outstanding at December 31, 2021: • From BPI (specific borrowing), P 3,600,000, 10% • From BDO (general borrowing), P 4,000,000, 12% • From PNB (general borrowing), P 2,000,000, 9% QUESTION 1: What is the capitalized borrowing costs for the year ended December 31, 2021? QUESTION 2 What is the interest expense for the year ended December 31, 2021? I Select 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![During 2021, Tiktok Company constructed various assets. The weighted average expenditures for capitalization
of interest during 2021 amounted to P 5,600,000. The entity had the following debt outstanding at December
31, 2021:
• From BPI (specific borrowing), P 3,600,000, 10%
• From BDO (general borrowing), P 4,000,000, 12%
• From PNB (general borrowing), P 2,000,000, 9%
QUESTION 1:
What is the capitalized borrowing costs for the year ended December 31, 2021?
I Select 1
QUESTION 2:
What is the interest expense for the year ended December 31, 2021?
I Select 1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F26f6c187-ea7c-443d-b1e2-388755431797%2F3d356ea9-8305-46b2-99ef-3098a3d3f79b%2Fkj4ejnn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:During 2021, Tiktok Company constructed various assets. The weighted average expenditures for capitalization
of interest during 2021 amounted to P 5,600,000. The entity had the following debt outstanding at December
31, 2021:
• From BPI (specific borrowing), P 3,600,000, 10%
• From BDO (general borrowing), P 4,000,000, 12%
• From PNB (general borrowing), P 2,000,000, 9%
QUESTION 1:
What is the capitalized borrowing costs for the year ended December 31, 2021?
I Select 1
QUESTION 2:
What is the interest expense for the year ended December 31, 2021?
I Select 1
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