The DUCK Company self constructed an asset for its own use. Construction started on January 1,2018 and the asset was completed on December 31,2018. Costs incurred during the year were as follows: January1- P 400,000 April- 500,000 August1 - 480,000 December1- 180,000 If the company had a two year, 18% loan of P 500,000, specially obtained to finance the asset construction, what is the capitalized interest added to the cost of the self-constructed asset?
The DUCK Company self constructed an asset for its own use. Construction started on January 1,2018 and the asset was completed on December 31,2018. Costs incurred during the year were as follows: January1- P 400,000 April- 500,000 August1 - 480,000 December1- 180,000 If the company had a two year, 18% loan of P 500,000, specially obtained to finance the asset construction, what is the capitalized interest added to the cost of the self-constructed asset?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The DUCK Company self constructed an asset for its own use. Construction started on January 1,2018 and the asset was completed on December 31,2018. Costs incurred during the year were as follows:
January1- P 400,000
April- 500,000
August1 - 480,000
December1- 180,000
If the company had a two year, 18% loan of P 500,000, specially obtained to finance the asset construction, what is the capitalized interest added to the cost of the self-constructed asset?
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