+ Chapter 10 Homework Question 5 of 11 View Policies Current Attempt in Progress The following three situations involve the capitalization of interest Situation On January 1, 2020, Wildhorse, Inc. signed a fixed-price contract to have Builder Associates construct a major plant facility at a cost of $4,482,000. It was estimated that it would take 3 years to complete the project. Also on January 1, 2020, to finance the construction cost, Wildhorse borrowed $4,482.000 payable in 10 annual installments of $448.200 plus interest at the rate of 10%. During 2020, Wildhorse made deposit and progress payments totaling $1.680.750 under the contract; the weighted- average amount of accumulated expenditures was $896,400 for the year. The excess borrowed funds were invested in short-term securities, from which Wildhorse realized investment income of $266, 100, What amount should Wildhorse report as capitalized interest at December 31, 2020? Capitalized interests e Textbook and Media Situation 11 During 2020, Sheffield Corporation constructed and manufactured certain assets and incurred the following interest costs in connection with those activities. Interest Costs incurred $33,140 Warehouse constructed for Sheffield's own use Special-order machine for sale to unrelated customer, produced according to customer's specifications Inventorles routinely manufactured produced on a repetitive basis 9,860 7,410 All of these assets required an extended period of time for completion. Assuming the effect of interest capitalization is material, what is the total amount of interest costs to be capitalized? The total amount of interest costs to be capitalized $ eTextbook and Media Situation 111 Tamarisk, Inc. has a fiscal year ending April 30. On May 1, 2020. Tamarisk borrowed $10,862.000 at 11% to finance construction of its own building. Repayments of the loan are to commence the month following completion of the building. During the year ended April 30, 2021, weighted average accumulated expenditures were $3,801,700. Interest earned on the unexpended portion of the loan amounted to $706,030 for the year, How much should be shown as capitalized interest on Tamarisk's financial statements at April 30, 2017 Capitalized interest on Tamarisk's financial statements e Textbook and Media Save for Later Attempts: 0 of 4 used Submit