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YAWA started constructing a building for its own use on January 1, 2020. YAWA 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 |
Construction expenditures:
| July 1, 2020 | 7,000,000 |
| November 31,2020 | 3,000,000 |
| December 31, 2020 | 1,000,000 |
The amount of borrowing cost that should be charged to profit or loss for the period is?
Group of answer choices
312,375
2,208,450
2,187,625
340,142
Answer & Explanation
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