During 2004, Bell Corporation constructed assets costing P750,000. The weighted-average accumulated expenditures on these assets during 2004 was P450,000. To help pay for construction, P330,000 was borrowed at 10% on January 1, 2004, and funds not needed for construction were temporarily invested in short-term securities, yielding P7,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a P375,000, 10-year, 9% note payable dated January 1, 1998. What is the amount of interest that should be capitalized by Bell during 2004? P43,800 P36,800 P45,000 P22,500

During 2004, Bell Corporation constructed assets costing P750,000. The weighted-average accumulated expenditures on these assets during 2004 was P450,000. To help pay for construction, P330,000 was borrowed at 10% on January 1, 2004, and funds not needed for construction were temporarily invested in short-term securities, yielding P7,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a P375,000, 10-year, 9% note payable dated January 1, 1998. What is the amount of interest that should be capitalized by Bell during 2004? P43,800 P36,800 P45,000 P22,500

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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