Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as

image text in transcribed
image text in transcribed
A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $510,000; March 31 $610,000, June 30, $410.000; October 30, $630,000. To help finance construction, the company arranged a 8% construction loan on January 1 for $720,000. The company's other borrowings, outstanding for the whole year, consisted of a $2 million loan and a $4 million note with interest rates of 10% and 7%, respectively. Assuming the company uses the specific interest method calculate the amount of interest capitalized for the year. (Do not round intermediate calculations. Round your percentage answers to 2 decimal places (i.e. 0.1234 should be entered as 12.34%).) Expenditure 510,000 610,000 410,000 630.000 2,160,000 Weight Avera ge anuary 1 March 31 June 30 October 30 Accumulated expondduros 12/12 9/12 6/12 2/12 $ 510,000 457,500 205,000 105,000 S 1,277,500 Average interest Rate Average accunulated expenditures $1,277,500 onstruction loan 8001% ther loans (not construction) I just need help getting the bottom three boxes. Everything else is good

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Law And Order Review 1993 An Audit Of Crime Policing And Criminal Justice Issues

Authors: John Benyon

1st Edition

1874493901, 978-1874493907

More Books

Students also viewed these Accounting questions