Principal P 1,000,000 12% bank loan (1.5 years) 10% bank loan (3-year) 8,000,000 Expenditures made on the qualifying asset were as follows: P 5,000,000 4,000,000 Jan. 1 March 1 August 31 3,000,000 December 1 2,000,000|
Principal P 1,000,000 12% bank loan (1.5 years) 10% bank loan (3-year) 8,000,000 Expenditures made on the qualifying asset were as follows: P 5,000,000 4,000,000 Jan. 1 March 1 August 31 3,000,000 December 1 2,000,000|
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On January 1, 20x1, Entity A had the following general borrowings. A part of the proceeds was used to finance the construction of a qualifying asset as shown in the image.
Construction was completed on December 31, 20x1.
How much is the cost of the qualifying asset on initial recognition?
Note: Answer should be numerical, do not put a comma or any symbol. Round to the nearest peso, no decimals (e.g. 123456)
Transcribed Image Text:Principal
P 1,000,000
12% bank loan (1.5 years)
10% bank loan (3-year)
8,000,000
Expenditures made on the qualifying asset were as follows:
P 5,000,000
4,000,000
Jan. 1
March 1
August 31
3,000,000
December 1
2,000,000|
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