Question
A company borrowed P15,000,000 at 12% for general purposes an partly to finance the construction of a warehouse on January 1, 2020. The loan is
A company borrowed P15,000,000 at 12% for general purposes an partly to finance the construction of a warehouse on January 1, 2020. The loan is to be repaid a month after the completion of the warehouse. Average expenditures of P10,000,000 during the year were incurred evenly. The entity earned interest of P200,000 for the year on the unexpended portion of the loan.
What amount of interest is capitalized on December 31, 2020?
What is the interest expense for 2020?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
