Show the solution in good accounting form On January 1, 2020, Katrina Company obtained a loan of P4,000,00o at aninterest rate of 10% specifically to finance the construction of its hewWarehouse. Availments from the loan were made in equal amounts every1 pointquarter of the year. Total borrowing costs amounted to P550,000. Prior totheir disbursements, the proceeds of the loan were temporarily investedand earned interest income amounting to P35,000. The warehouse wascompleted on December 31, 2020. What amount is capitalizable borrowingcost? *

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Description: Show the solution in good accounting form On January 1, 2020, Katrina Company obtained a loan of P4,000,00o at aninterest rate of 10% specifically to finance the construction of its hewWarehouse. Availments from the loan were made in equal amounts ev

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on January 1, 2020, Katrina Company obtained a loan of P4,000,000 at anpomt interest rate of 10% specifically to finance the construction of its new Warehouse. Availments from the loan were made in equal amounts every quarter of the year. Total borrowing costs amounted to P550,000. Prior to their disbursements, the proceeds of the loan were temporarily invested and earned interest income amounting to P35,000. The warehouse was completed on December 31, 2020. What amount is capitalizable borrowing Cost? *

on January 1, 2020, Katrina Company obtained a loan of P4,000,000 at anpomt interest rate of 10% specifically to finance the construction of its new Warehouse. Availments from the loan were made in equal amounts every quarter of the year. Total borrowing costs amounted to P550,000. Prior to their disbursements, the proceeds of the loan were temporarily invested and earned interest income amounting to P35,000. The warehouse was completed on December 31, 2020. What amount is capitalizable borrowing Cost? *

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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