Reference no: EM133140082
Question - For more than a decade since its incorporation, ABC Company had been renting its office space. The Company President thought of constructing their own building for 40,000,000 which they plan to start and finish until December 31, 2021.
ABC Company made the following payments, based on the construction contract, during 2021.
January 31: 5,000,000
February 28: 8,000,000
July 1: 15,000,000
August 31: 10,000,000
November 30: 2,000,000
ABC Company secured a 10%, 4-year noted dated January 1, 2021, specifically intended for the construction. The amount was 20,000,000.
Also, the entity had other debts outstanding as follows:
8%, 6-year note dated December 31, 2019: 18,000,000
12%, 7-year noted dated December 31, 2018: 22,000,000
Required - What is the total cost of the building constructed?