5. How much borrowing costs are capitalized to the cost of the constructed building? * FOR ITEM# 5 On Jan 1, 2021, Mayumi Corp. obtained a 12%, Php6,000,000 loan, specifically to finance the...

This topic is about borrowing costs. Please choose the letter of the correct answer based on the picture.

Extracted text: 5. How much borrowing costs are capitalized to the cost of the constructed building? * FOR ITEM# 5 On Jan 1, 2021, Mayumi Corp. obtained a 12%, Php6,000,000 loan, specifically to finance the construction of a building. The proceeds of the loan were temporarily invested and earned interest income of Php180,000. The construction was completed on Dec 31, 2021. a. 540,000 b. 480,000 c. 720,000 d. 0