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What amount should bhev report as capitalized interest

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Problem 1: BhevLao Company started contruction of a new office building on January 1, 2018, and moved into the finished building on July 1, 2019. Of the building's P5,000,000 total cost , P4,000,000 was incurred in 2018 evenly during the year. Bhev's incremental borrowing rate was 12% throughout 2018, and the total amount of interest incurred by Bhev during the 2018 was P204,000. What amount should Bhev report as capitalized interest at December 31, 2018?

Reference no: EM132737377

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