Problem
CC Company had the following outstanding loans during 2014 and 2015:
|
Specific construction loan
|
4,500,000
|
15%
|
|
General loan
|
37,500,000
|
11%
|
The entity began the self-construction of a new building on January 1, 2014 and the building was completed on July 1, 2015. The following expenditures were made during 2014: January 1, P6,000,000, April 1, P7,500,000, October 30, P2,000,000, and December 1, P2,500,000. During 2015, the company disbursed P9,000,000 on March 1.
a) Compute for the average expenditures during 2014.
b) Compute for the capitalizable borrowing cost (specific), 2014.
c) Compute for the capitalizable borrowing cost (general), 2014.
d) Compute for the cost of the new building on December 31, 2014.
e) Compute for cost of the interest expense for 2014.
f) Compute for the average expenditures during 2015.
g) Compute for the capitalizable borrowing cost (specific), 2015.
h) Compute for the capitalizable borrowing cost (general), 2015.
i) Compute for the cost of the new building on December 31, 2015.
j) Compute for cost of the interest expense for 2015.