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The D Company self constructed an asset for its own use. Construction started on January 1,2020 and the asset was completed on December 31,2020. Costs incurred during the year were as follows:   January1- P 400,000 April- 500,000 August1 - 480,000 December1- 180,000   If the company had a two year, 18% loan of P 500,000, specially obtained to finance the asset construction, what is the capitalized interest added to the cost of the self-constructed asset? P 178,200 P 90,000 P 280,800 P 140,000

The D Company self constructed an asset for its own use. Construction started on January 1,2020 and the asset was completed on December 31,2020. Costs incurred during the year were as follows:   January1- P 400,000 April- 500,000 August1 - 480,000 December1- 180,000   If the company had a two year, 18% loan of P 500,000, specially obtained to finance the asset construction, what is the capitalized interest added to the cost of the self-constructed asset? P 178,200 P 90,000 P 280,800 P 140,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The D Company self constructed an asset for its own use. Construction started on January 1,2020 and the asset was completed on December 31,2020. Costs incurred during the year were as follows:
 
January1- P 400,000
April- 500,000
August1 - 480,000
December1- 180,000
 
If the company had a two year, 18% loan of P 500,000, specially obtained to finance the asset construction, what is the capitalized interest added to the cost of the self-constructed asset?

P 178,200
P 90,000
P 280,800
P 140,000
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