. Question 7. PINAUTANG started constructing a building for its own use in March1, 2020. PINAUTANG provided the following information related to theconstruction:Outstanding loans of the Company at January 1, 2020:Interest Rate5%10%TotalAmount of loanP10,000,00020,000,000P30,000,000March 1, 2020May 31, 2020July 1, 2020November 31,2020December 31, 2020Interest CostOn January 1, 2020, PINAUTANG also borrowed P3,000,000 at 15% per annum,to specifically fund its expected construction on March 1, 2020.P1,000,0008,000,0007,000,0004,000,0001,000,000P 500,0002,000,000P2,500,000February 1, 2021March 31, 2021P3,000,0002,000,000How much is the total cost of the constructed asset as of December 31, 2020?Group of answer choicesA. 23,950,000B. 22,133,060C. 21,944,217D. 22,152,467

INTRODUCTION: Total cost is the total cost of manufacturing that includes both fixed and variable…

Question 7. 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 5% 10% Total March 1, 2020 May 31, 2020 July 1, 2020 November 31,2020 December 31, 2020 Amount of loan P10,000,000 20,000,000 P30,000,000 C. 21,944,217 D. 22,152,467 On January 1, 2020, PINAUTANG also borrowed P3,000,000 at 15% per annum, to specifically fund its expected construction on March 1, 2020. P1,000,000 8,000,000 7,000,000 Interest Cost 4,000,000 1,000,000 P 500,000 2,000,000 P2,500,000 February 1, 2021 March 31, 2021 P3,000,00 2,000,000 How much is the total cost of the constructed asset as of December 31, 2020? Group of answer choices A. 23,950,000 B. 22,133,060

Question 7. 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 5% 10% Total March 1, 2020 May 31, 2020 July 1, 2020 November 31,2020 December 31, 2020 Amount of loan P10,000,000 20,000,000 P30,000,000 C. 21,944,217 D. 22,152,467 On January 1, 2020, PINAUTANG also borrowed P3,000,000 at 15% per annum, to specifically fund its expected construction on March 1, 2020. P1,000,000 8,000,000 7,000,000 Interest Cost 4,000,000 1,000,000 P 500,000 2,000,000 P2,500,000 February 1, 2021 March 31, 2021 P3,000,00 2,000,000 How much is the total cost of the constructed asset as of December 31, 2020? Group of answer choices A. 23,950,000 B. 22,133,060

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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