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Asap please Flint Furniture started construction of a combination office and warehouse building for its own use at an estimated cost of 4,300,000 on January
Asap please
Flint Furniture started construction of a combination office and warehouse building for its own use at an estimated cost of 4,300,000 on January 1, 2022. Flint expected to complete the building by December 31, 2022. Flint has the following debt bligations outstanding during the construction period. 1.750,000 Construction loan-8% interest, payable semiannually, issued December 31, 2021 Short-term loan-6% interest. payable monthly, and principal payable at maturity on May 30, 2023 Long-term loan-7% interest, payable on January 1 of each year, Principal payable on January 1, 2026 1400.000 875,000 (a) Assume that Flint completed the office and warehouse building on December 31, 2022, as planned at a total cost of 4.550,000. The following expenditures were made during the period for this project: January 1, 875,000: April 1. 1.275,000: July 1. 1,675,000; and October 1, 520,000. Excess funds from the construction loans were invested during the period and earned 19,000 of investment income. Compute the amount of borrowing costs to be capitalized for this project. (Use interest rates res and mind final answers to decimal places, ey. 5.275.) Step by Step Solution
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