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40. (3 points) On 12-31-19, Acme purchased a machine. Acme signed a $150,000 zero-interest bearing note. The note is payable in full on 12-31-21. Assume
40. (3 points) On 12-31-19, Acme purchased a machine. Acme signed a $150,000 zero-interest bearing note. The note is payable in full on 12-31-21. Assume an acceptable interest rate on similar notes was 4%. On 12-31-19, Acme incurred and paid $12,000 to have the machine installed in its sales office. In this problem, you can ignore depreciation - we will get to that in chapter 11. Prepare the entries Acme should make related to this machine on: a. 12-31-19. b. 12-31-20. c. 12-31-21. 41. (6 points) B constructed a warehouse for its own use. B started construction on January 1 and completed construction on December 31. Construction expenditures were as follows: $480,000 on January 1 $600,000 on March 1 $360,000 on July 1 $150,000 on September 30 . During the entire year B had the following outstanding notes payable: A4%, 5-year $6,000,000 note payable A 3%, 15-year $8,000,000 note payable A 5%, 4-year $4,000,000 note payable a) What were B's total interest costs for the year? b) What amount of interest should B capitalize on this construction project? c) What was B's interest expense for the year? When necessary, round any interest rate as follows: 4.873% - whilo 3314% = 3.3%
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