a. 324,000 b. 184,000 c. 204,000 d. 304,000

1. ABC Company constructed a building to be used as an investment property. The constructed began on January 1, 2014 with the company spending P600,000. The following were the other actual expenditures of the company: March 31, 2014 P400,000 July 1, 2014 800,000 October 1, 2014 800,000 October 31, 2014 200,000 The building was completed on December 31, 2014. The construction of the building was financed by the following borrowings: Loan - BPI (used solely for the construction) P 1,000,000 at 15% interest per annum. Loan - BDO (for general purposes) 600,000 at 15% interest per annum. Loan - RCBC (for general purposes) 900,000 at 10% interest per annum. The company temporarily invested unused cash funds and earned the following: From Loan - BPI P10,000 From Loan - BDO 15.000 From Loan - RCBC 5,000 What amount of borrowing cost shall be capitalized for the building