Madrigal Company constructed a building for its own use. Construction started on January 3, 2021 and the building was completed on December 31, 2021. The total construction costs of P1,560,000 were incurred evenly during the construction period. The company has the following outstanding obligations prior to the start of construction. Specific borrowing ---P700,000, 16% due January 1, 2023 General borrowing ---P500,000, 18% due December 31, 2024 How much interest is capitalized?
Madrigal Company constructed a building for its own use. Construction started on January 3, 2021 and the building was completed on December 31, 2021. The total construction costs of P1,560,000 were incurred evenly during the construction period. The company has the following outstanding obligations prior to the start of construction. Specific borrowing ---P700,000, 16% due January 1, 2023 General borrowing ---P500,000, 18% due December 31, 2024 How much interest is capitalized?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Madrigal Company constructed a building for its own use. Construction started on January 3, 2021 and the building was completed on December 31, 2021. The total construction costs of P1,560,000 were incurred evenly during the construction period. The company has the following outstanding obligations prior to the start of construction.
Specific borrowing ---P700,000, 16% due January 1, 2023
General borrowing ---P500,000, 18% due December 31, 2024
How much interest is capitalized?
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