Professional Documents
Culture Documents
Problem 1-3 - Borrowing Costs
Problem 1-3 - Borrowing Costs
real state broker’s commission of P108,000, legal fees of P18,000 and title
land value was P1,500,000 and the building value was P300,000. Shortly
on the land site 101. The building was completed and occupied on
follows:
interest at the rate of 14%. Cabiao used part of the loan proceeds for
QUESTIONS:
Based on the above and the result of your audit, determine the following:
a. P1,905,000 c. P2,205,000
b. P1,800,000 d. P2,151,000
a. P10,581,000 c. P10,329,000
b. P10,360,500 d. P10,960,500
b. P97,130 d. P 99,197
4. Disclose amount of borrowing costs capitalized in period. Capitulation rate used to determine amount
of borrowing costs eligible for cap.
A. Recognition
B. Directly Attributable
C. Borrowing Costs
D. Disclosures
A. Directly attributable
B. Disclosures
C. Borrowing Costs
D. Qualifying Assets