On January 1, 2020, Katrina Company obtained a loan of P4,000,000 at an interest rate of 10% specifically to finance the construction of its new Warehouse. Availments from the loan were made in equal...

On January 1, 2020, Katrina Company obtained a loan of P4,000,000 at an interest rate of 10% specifically to finance the construction of its new Warehouse. Availments from the loan were made in equal amounts every quarter of the year. Total borrowing costs amounted to P550,000. Prior to their disbursements, the proceeds of the loan were temporarily invested and earned interest income amounting to P35,000. The warehouse was completed on December 31, 2020. What amount is capitalizable borrowing cost?