Company A broke construction on a 5-storey building in the beginning of March, 2020, incurring the following payments to the contractor:

March 01, 2020	1,700,000
August 01, 2020	2,000,000
July 01, 2021	1,600,000

The companys working capital requirements are financed by the following outstanding interest-bearing loans:

Loan A, interest payable every October 30:
Date	Term in years	Annual interest rate	Principal
November 1, 2018	5	12%	9,000,000
Loan B, interest payable every January 31 and July 31:
Date	Term in years	Annual interest rate	Principal
August 01, 2019	3	10%	7,500,000

The company drew from the proceeds of these loans for the construction of the building, which was completed at the end of 2021.

In 2020, idle funds were temporarily invested in a money market fund that provided dividends of P115,000.

Round average interest rates to nearest percentage (e.g., 4%, 5%, 6%, etc.).

Determine:

1. Interest expense in 2020
2. Carrying amount of the building as of December 31, 2021.

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