On January 1, 2020 there is a P300,000 balance in Construction in progress-building account. Included in that balance is P60,000 of interest capitalized in the first two years of the construction. Construction expenditures during the year 2020 were P800,000 which were incurred evenly throughout the entire year. The company has had over P3,000,000 in interest-bearing debt outstanding in 2020, at a weighted average rate of 9%. How much interest is capitalized in 2020?

a. P36,000 b. P63,000 c. P93,600 d. P99,000

During 2020, Bis Co. incurred these expenditures relating to its plant building: Continuing and frequent repairs: P160,000 Repainted the plant building: P40,000 Major improvements to the electrical wiring system: P128,000 Partial replacement of roof tiles: P56,000 How much of the above expenses should be capitalized?

a. P128,000 b. P184,000 c. P256,000 d. P288,000