This topic is about borrowing costs. based on the problem in the picture, Please choose the letter of the correct answer below; How much borrowing costs are capitalized to the cost of the constructed qualifying asset? a. 1,045,000 b. 970,900 c. 1,026,667 d. 920,000 How much is the cost of the qualifying asset on initial recognition? a. 13,010,000 b. 15,045,000 c. 14,920,000 d. 14,970,900
This topic is about borrowing costs. based on the problem in the picture, Please choose the letter of the correct answer below; How much borrowing costs are capitalized to the cost of the constructed qualifying asset? a. 1,045,000 b. 970,900 c. 1,026,667 d. 920,000 How much is the cost of the qualifying asset on initial recognition? a. 13,010,000 b. 15,045,000 c. 14,920,000 d. 14,970,900
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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This topic is about borrowing costs. based on the problem in the picture, Please choose the letter of the correct answer below;
How much borrowing costs are capitalized to the cost of the constructed qualifying asset?
a. 1,045,000
b. 970,900
c. 1,026,667
d. 920,000
How much is the cost of the qualifying asset on initial recognition?
a. 13,010,000
b. 15,045,000
c. 14,920,000
d. 14,970,900
Transcribed Image Text:On Jan 1, 2021, Mayaman Company had the following general borrowings.
A part of the proceeds was used to finance the construction of a qualifying
asset.:
Principal
12% bank loan (1.5 years)
1,000,000.00
10% bank loan (3 years)
8,000,000.00
Expenditures made for the qualifying asset were as follows:
Jan 1
5,000,000.00
Mar 1
4,000,000.00
Áug 31
3,000,000.00
Dec 31
2,000,000.00
Construction was completed on Dec 31, 2021.
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