On January 1, 2021, John Kyle Corporation acquired land that will be used for management's office. This land cost 1,000,000. The entity borrowed 2,000,000 with an annual interest of 10% specifically for the construction of the office building and 5,000,000 with an annual interest of 12% for general purpose. The company's capital expenditure amounts to 2,000,000 on January 1, 2021, 1,000,000 on June 30, 2021, 800,000 on September 30, 2021 and 1,000,0000 on January 1, 2022. The construction of the new building ended at June 30, 2022. What is the carrying amount of PPE in December 31, 2022? *
On January 1, 2021, John Kyle Corporation acquired land that will be used for management's office. This land cost 1,000,000. The entity borrowed 2,000,000 with an annual interest of 10% specifically for the construction of the office building and 5,000,000 with an annual interest of 12% for general purpose. The company's capital expenditure amounts to 2,000,000 on January 1, 2021, 1,000,000 on June 30, 2021, 800,000 on September 30, 2021 and 1,000,0000 on January 1, 2022. The construction of the new building ended at June 30, 2022. What is the carrying amount of PPE in December 31, 2022? *
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 15DQ
Related questions
Question
On January 1, 2021, John Kyle Corporation acquired land that will be used for management's office. This land cost 1,000,000. The entity borrowed 2,000,000 with an annual interest of 10% specifically for the construction of the office building and 5,000,000 with an annual interest of 12% for general purpose. The company's capital expenditure amounts to 2,000,000 on January 1, 2021, 1,000,000 on June 30, 2021, 800,000 on September 30, 2021 and 1,000,0000 on January 1, 2022. The construction of the new building ended at June 30, 2022. What is the carrying amount of PPE in December 31, 2022? *
a. P6,354,000
b . P6,454,040
c. P6,454,080
d. P6,363,040
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning