Problem 27-14 (AICPA Adapted) During 2019, Elijah Company constructed a new building at a cost of P30,000,000. The expenditures for the building which was finished late in 2019 were incurred evenly during the year. The entity had the following loans outstanding on December 31, 2019 10% note to finance specifically the construction, dated January 1, 2019, P10,000,000. The note is unpaid on December 31, 2019. Investments were made on the proceeds from the loan and income of P100,000 was realized in 2019. 12% 10-year bonds issued at face amount on April 30, 2018, P30,000,000. 8% 5-year note payable, dated March 1, 2018, P10,000,000. 1. What is the capitalizable borrowing cost? 1,550,000 b. 1,450,000 1,400,000 d. 1,500,000 a. C. 2. What is the interest expense for 2019? 4,400,000 b. 2,850,000 3,850,000 d. 2,950,000 a. C