Answered: Bucky Company had loans outstanding…

Bucky Company had loans outstanding during 2019 and 2020. Specific construction loan: P2,000,000 --- 10% General loan: P15,000,000 ----12%

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 26E

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Question

What is the cost of the new building on December 31, 2019?

A. P9,000,000

B. P9,500,000

C. P9,200,000

D. P9,300,000

What is the cost of the new building on December 31, 2020?

A. P10,000,000

B. P11,660,000

C. P11,700,000

D. P11,500,000

Bucky Company had loans outstanding during 2019 and 2020.
Specific construction loan: P2,000,000 ---- 10%
General loan: P15,000,000 ---12%
The entity began the self-construction of a new building on January 1, 2019 and
the building was completed on December 31, 2020.
January 1, 2019
July 1, 2019
November 1, 2019
July 1, 2020
2,000,000
4,000,000
3,000,000
1,000,000

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