During 2020, Israel Company constructed asset costing P4,215,000. The weighted average accumulated expenditures on the asset during the current year amounted to P3,900,000. The entity borrowed P2,000,000 at 7.5% on January 1, 2020. Funds not needed for construction were temporarily invested in short-term securities and earned P59,000 in interest revenue. In addition to the construction loan, the entity had two other notes outstanding during the year, a P1,500,000. 10-year, 10% note payable dated October 1, 2019, and a P1,000,000. 8% note payable dated November 2, 2019.

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