27.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:

Principal

12% bank loan (1.5 years) P1,000,000

10% bank loan (3 years) P8,000,000

Expenditures made on the qualifying asset were as follows:

Jan 1 5,000,000

March 1 4,000,000

August 31 3,000,000

December 1 2,000,000

Construction was completed on december 31, 20x1

How much is the cost of the qualifying asset on initial recognition?

• Answer not given
• P 15,045,000
• P 14,971,111
• P 14,920,000
• P 13,010,000