Company X is a manufacturing firm with total liabilities of Php3,000,000. During the year, it borrowed funds from the bank to purchase machinery. How should it account for the specific borrowing costs related to the loan? Expensed since Company X is an SME Capitalized since the borrowing is for a qualifying asset Capitalized whether or not Company X is an SME Expensed whether or not Company X is an SME

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Company X is a manufacturing firm with total liabilities of Php3,000,000. During the year, it borrowed funds from the bank to purchase machinery. How should it account for the specific borrowing costs related to the loan?

Expensed since Company X is an SME
Capitalized since the borrowing is for a qualifying asset
Capitalized whether or not Company X is an SME
Expensed whether or not Company X is an SME
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