On March 1, 2023, Cake Company began construction of a low-rise building for their own use. The construction was completed on October 31, 2023. It is the company's policy to capitalize interest cost as provided in IAS 23, Borrowing Costs. The company had the following outstanding debts during the year 2023: • 12%, 3-year note dated March 1, 2023. This loan relates specifically to the building project. - P10,000,000 9%, 5-year note dated July 16, 2022- P5,000,000 Expenditures on the project during 2023 were as follows: March 1-P6,700,000 July 10-7,800,000 September 1-6,250,000 What is the total cost of the self-constructed building?
On March 1, 2023, Cake Company began construction of a low-rise building for their own use. The construction was completed on October 31, 2023. It is the company's policy to capitalize interest cost as provided in IAS 23, Borrowing Costs. The company had the following outstanding debts during the year 2023: • 12%, 3-year note dated March 1, 2023. This loan relates specifically to the building project. - P10,000,000 9%, 5-year note dated July 16, 2022- P5,000,000 Expenditures on the project during 2023 were as follows: March 1-P6,700,000 July 10-7,800,000 September 1-6,250,000 What is the total cost of the self-constructed building?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On March 1, 2023, Cake Company began construction of a low-rise building for their own use. The construction was completed on October 31, 2023. It is the company's policy to capitalize interest cost as provided in IAS 23, Borrowing Costs. The company had the following outstanding debts during the year 2023:
• 12%, 3-year note dated March 1, 2023. This loan relates specifically to the building project. - P10,000,000
9%, 5-year note dated July 16, 2022- P5,000,000
Expenditures on the project during 2023 were as follows:
March 1-P6,700,000
July 10-7,800,000
September 1-6,250,000
What is the total cost of the self-constructed building?
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