PINAUTANG started constructing a building for its own use in March 1, 2020. PINAUTANG provided the following information related to the construction:   Outstanding loans of the Company at January 1, 2020:        Interest Rate Amount of loan Interest Cost 5% P10,000,000 P   500,000 10% 20,000,000 2,000,000  Total P30,000,000 P2,500,000   On January 1, 2020, PINAUTANG also borrowed P3,000,000 at 15% per annum, to specifically fund its expected construction on March 1, 2020.   March 1, 2020 P1,000,000 February 1, 2021 P3,000,000 May 31, 2020 8,000,000 March 31, 2021 2,000,000 July 1, 2020 7,000,000     November 31,2020 4,000,000     December 31, 2020 1,000,000     How much is the total cost of the constructed asset as of December 31, 2020? 22,152,467 22,133,060 23,950,000 21,944,217

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A:

Q: 1. Calculate the amount of interest that Mason should capitalize in 2021 and 2022 using the…

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A:

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A:

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A: Cost of constructed assets includes: Material cost Labor cost Overhead cost

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