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1 pc On January 1, 2016, ABC started construction of a new office building. To finance construction, ABC borrowed P15M specifically for the construction of
1 pc On January 1, 2016, ABC started construction of a new office building. To finance construction, ABC borrowed P15M specifically for the construction of the bullding. Interest accruing on the loan is 10%. However, a part of the borrowing is used for working capital and other business needs during the year. Investment Income earned on temporary Investments of proceeds from the borrowing amount to P50,000 which was received in cash on October 1, 2016. Expenditures on the building amounted to P6M which was Incurred evenly during the year. How much is the capitalizable borrowing cost? * Your
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