Transcribed Image Text: Contact Support for textbook, writing, or account heln Balance Corporation borrowed P10,000,000 at 12% to finance in part the construction of a new office building on January

Transcribed Image Text: Contact Support for textbook, writing, or
account heln
Balance Corporation borrowed P10,000,000 at 12% to finance in part the
construction of a new office building on January 1, 2021 and in part for general
purposes. The loan is to be repaid commencing the month following completion of the
building.
Expenditures for the completed structure totaled P8,000,000 during the year ended
December 31, 2021. These expenditures were incurred evenly throughout the year.
The entity earned interest of P80,000 for the year on the unexpended portion of the
loan.
amount of interest is capitalized on December 31, 2021?
is the interest expense for 2021?
O 720,000
O 1,000,000
O 1.200.000

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