During 2020, ABC Company constructed various assets. The weighted average expenditures for capitalization of interest during 2021 amounted to P 5,600,000. The entity had the following debt outstanding at December 31, 2021: • From BPI (specific borrowing), P 3,600,000, 10% • From BDO (general borrowing), P 4,000,000, 12% • From PNB (general borrowing), P 2,000,000, 9% 1) What is the capitalized borrowing costs for the year ended December 31, 2020? P580,000 P360,000 P800,000 P440,000 2) What is the interest expense for the year ended December 31, 2020? P580,000 P480,000 P660,000 P440,000

Q: On January 1, 2020, Aguilar Corporation purchased bonds with a face value of P4,000,000 for…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

Q: On January 1, 2021, Illuminati Company purchased 10% bonds with a face amount of P3,000,000. The…

A: Formulas that are used:-

Q: During 2020, the Tidel Company completed the following transactions related to its property, plant,…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Trump Company constructed various assets at a total cost of $8,400,000 during 2019. The weighted…

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Q: Samuel Corporation had net current assets of P2,500,000 at the end of 2022 and P1,800,000 at the end…

A: Net current assets at the end of year 2022 = P 2,500,000 Net current assets at the end of year 2021…

Q: On January 1, 2018, an entity purchased bonds with face amount of P5,000,000. The entity paid…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: The Slow company has started the construction of an asset on September 1, 2019 and finished it on…

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Q: In 2020, ABC Industries, Inc. constructed a new manufacturing facility at a cost of ₱12,000,000. The…

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Q: On January 1, 2019, Lasagna Company purchased 3,000, P1,000 face value term bonds with a stated rate…

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Q: onal Corporation had net current assets of P2,500,000 at the end of 2022 and P1,800,000 at the end…

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Q: For 2019, Nirvana Industries disclosed cash revenue of $11.0 million and cash expenses of $6.0…

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Q: 23. On January 1, 2020, ENERVATE TO WEAKEN Company had the following borrowings made for general…

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Q: For 2019, Nirvana Industries disclosed cash revenue of $12.0 million and cash expenses of $6.0…

A: CASH REVENUE = $12.0 million CASH EXPENSES= $6.0 million DEPRECIATION =$2.0million CAPITAL…

Q: Capitalization of interest During 2020, Barden Building Company constructed various assets at a…

A: 1. Computation is represented as below: Hence, avoidable interest is $32,448,182. Formula Sheet:

Q: On December 31, 2019, Main Inc. borrowed $3,000,000 at 12% payable annually to finance the…

A: Requirement a:   Compute the average investment.

Q: The following breakdown of the MNO Corporation's property, plant and equipment and bonds payable is…

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Q: During 2021, Tiktok Company constructed various assets. The weighted average expenditures for…

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Q: On January 1, 2019, Lasagna Company purchased 3,000, P1,000 face value term bonds with a stated rate…

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Q: 10-year, 13% bond, December 31, 2013,

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Q: During 2020, Hani Company incurred average accumulated expenditures of $1,000,000 during the…

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Q: these assets during 2020 was $2470000. To help pay for construction, $1710000 was borrowed at 11% on…

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Q: On January 1, 2021, Illuminati Company purchased 10% bonds with a face amount of P3,000,000. The…

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Q: At December 31, 2019, Afro Corp. reported P1.750,000 of appropriated retained earnings for the…

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Q: Alta Company is constructing a production complex that qualifies for interest capitalization. The…

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Q: In 2020, ABC Industries, Inc. constructed a new manufacturing facility at a cost of ₱12,000,000. The…

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Q: On January 1, 2020, Aguilar Corporation purchased bonds with a face value of P4,000,000 for…

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Q: Trump Company constructed various assets at a total cost of $8,400,000 during 2019. The weighted…

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Q: National Corporation had net current assets of P2,500,0 at the end of 2021. In addition, National…

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Q: On December 31, 2019, Nash Inc. borrowed $3,600,000 at 13% payable annually to finance the…

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Q: Compute the capitalizable borrowing cost. * On January 1, 2022, Entity A had the following general…

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Q: National Corporation had net current assets of P2,500,000 at the end of 2022 and P1,800,000 at the…

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Q: Coal Company began constructing a building for its own use in January 2023.  During 2023, Coal…

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Q: Marie Company had a 10% P3,000,000 specific construction loan and 12% P25,000,000 general loan…

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A:

Q: Rona Co. had 9% P2,000,000 specific construction loan and 12% P15,000,000 general loan outstanding…

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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.