PINAUTANG started constructing a building for its own use in March 1, 2020, PINAUTANG 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% 20,0000,000 2,000,000 Total P30,000,000 P2,500,000 On January 1, 2020, PINAUTANG also borrowed P3,000,000 at 15% per annum, to specifically fund its expected construction on March 1, 2020. March 1, 2020 P1,000,000 February 1, 2021 P 3,000,000 May 31, 2020 8,000,000 March 31, 2021 2,000,000 July 1, 2020 7,000,000 November 31, 2020 4,000,000 December 31, 2020 1,000,000 How much is the total cost of constructed asset as of December 31, 2020 a. 23,950,000 b. 21,944,217 c. 22,133,060 d. 22,152,467
PINAUTANG started constructing a building for its own use in March 1, 2020, PINAUTANG 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% 20,0000,000 2,000,000
Total P30,000,000 P2,500,000
On January 1, 2020, PINAUTANG also borrowed P3,000,000 at 15% per annum, to specifically fund its expected construction on March 1, 2020.
March 1, 2020 P1,000,000 February 1, 2021 P 3,000,000
May 31, 2020 8,000,000 March 31, 2021 2,000,000
July 1, 2020 7,000,000 November 31, 2020 4,000,000
December 31, 2020 1,000,000
How much is the total cost of constructed asset as of December 31, 2020
a. 23,950,000
b. 21,944,217
c. 22,133,060
d. 22,152,467
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