On January 1, 2020, SAMSON MFG. CO. began construction of a building to be used as its office headquarters. The building was completed on September 30, 2021.

Question: Expenditures on the project were as follows:

January 3, 2020 1,500,000 March 31, 2020 2,500,000 June 30, 2020 3,000,000 October 31, 2020 3,000,000 January 31, 2021 4,000,000 March 31, 2021 3,000,000 May 31, 2021 2,500,000

On January 3, 2020, the company obtained a P5 million construction loan with a 10% interest rate. The loan was outstanding all of 2020 and 2021. The companys other interest-bearing debts included a long-term note of P25 million with an 8% interest rate, and a mortgage of P15 million on another building with an interest rate of 6%. Both debts were outstanding during all of 2020 and 2021. The companys fiscal year-end is December 31.

1. What is the amount of capitalizable interest in 2020? 2. What is the amount of capitalizable interest in 2021? 3. What amount of interest should be expensed in 2020? 4. What amount of interest should be expensed in 2021? 5. What is the total cost of the building (including the interest capitalized in 2020 and 2021)?