Faith, Inc. has a fiscal year ending April 30. On May 1, 2018, Faith borrowed...
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Faith, Inc. has a fiscal year ending April 30. On May 1, 2018, Faith borrowed P10,000,000 at15% to finance construction of its own building. Repayments of the loan are to commence on themonth following completion of the building. During the year ended, April 30, 2019, expendituresfor the partially completed structure totaled P6,000,000. These expenditures were incurred evenlythroughout the year. Interest earned on the unexpended portion of the loan amount to P400,000 forthe year. How much should be shown as capitalized interest on Faith's financial statements at April30, 2019?
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