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NANGUTANG started constructing a building for its own use on January 1, 2020. NANGUTANG provided the following information related to the construction:   Outstanding loans of the Company at January 1, 2020:        Interest Rate Amount of loan Interest Cost 5% P10,000,000 P   500,000 10% 20,000,000 2,000,000  Total P30,000,000 P2,500,000   Construction expenditures: July 1, 2020 7,000,000 November 31,2020 3,000,000 December 31, 2020 1,000,000   The amount of borrowing cost that should be charged to profit or loss for the period is? Group of answer choices 2,208,450 340,142 2,187,625 312,375

NANGUTANG started constructing a building for its own use on January 1, 2020. NANGUTANG provided the following information related to the construction:   Outstanding loans of the Company at January 1, 2020:        Interest Rate Amount of loan Interest Cost 5% P10,000,000 P   500,000 10% 20,000,000 2,000,000  Total P30,000,000 P2,500,000   Construction expenditures: July 1, 2020 7,000,000 November 31,2020 3,000,000 December 31, 2020 1,000,000   The amount of borrowing cost that should be charged to profit or loss for the period is? Group of answer choices 2,208,450 340,142 2,187,625 312,375

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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NANGUTANG started constructing a building for its own use on January 1, 2020. NANGUTANG provided the following information related to the construction:

 

Outstanding loans of the Company at January 1, 2020:       

Interest Rate

Amount of loan

Interest Cost

5%

P10,000,000

P   500,000

10%

20,000,000

2,000,000

 Total

P30,000,000

P2,500,000

 

Construction expenditures:

July 1, 2020

7,000,000

November 31,2020

3,000,000

December 31, 2020

1,000,000

 

The amount of borrowing cost that should be charged to profit or loss for the period is?

Group of answer choices
2,208,450
340,142
2,187,625
312,375
 
 
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