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Early in 2017, ABC Corporation engaged XYZ Inc. to design and construct a new building. Construction started on February 1, 2017 and was completed on
Early in 2017, ABC Corporation engaged XYZ Inc. to design and construct a new building. Construction started on February 1, 2017 and was completed on December 31, 2017. ABC made the following payments to XYZ Inc. during 2017: Date Payment February 1, 2017 #VALUE! May 31, 2017 #VALUE! December 31, 2017 #VALUE! In order to help finance the construction, ABC borrowed, on January 1, 2017, the following amount at 9% payable annually: #VALUE! In addition, the company had two loans outstanding all year, as follows: Note Payable #1 #VALUE! 3-year, 10% note payable Note Payable #2 #VALUE! 4-year, 7% note payable Compute the amounts of each of the following (show computations and clearly label your answer to each item) 1. Weighted average accumulated expenditures qualifying for capitalization of interest cost (7 points) 18 19 20 21 22 23 24 25 26 27 28 2. Actual interest incurred during 2017 (10 points) 29 30 Problem Problem 2 Problem Early in 2017, ABC Corporation engaged XYZ inclo Weighted average interest rate (round to two decimal places, for example: 5.45%) (3 points) 4. Avoidable interest incurred during 2017 (7 points) SUSU ID Examinstructions Multiple Choice Question Problem Problem 2 Problem O i # E Search for anything 5. Total amount of interest cost to be capitalized during 2017 (1 point) 6. Prepare the journal entry for capitalization of interest (2 points) Problem Problem 2 Prob Evam instructions SVSUD Multiple Choice Questions Early in 2017, ABC Corporation engaged XYZ Inc. to design and construct a new building. Construction started on February 1, 2017 and was completed on December 31, 2017. ABC made the following payments to XYZ Inc. during 2017: Date Payment February 1, 2017 #VALUE! May 31, 2017 #VALUE! December 31, 2017 #VALUE! In order to help finance the construction, ABC borrowed, on January 1, 2017, the following amount at 9% payable annually: #VALUE! In addition, the company had two loans outstanding all year, as follows: Note Payable #1 #VALUE! 3-year, 10% note payable Note Payable #2 #VALUE! 4-year, 7% note payable Compute the amounts of each of the following (show computations and clearly label your answer to each item) 1. Weighted average accumulated expenditures qualifying for capitalization of interest cost (7 points) 18 19 20 21 22 23 24 25 26 27 28 2. Actual interest incurred during 2017 (10 points) 29 30 Problem Problem 2 Problem Early in 2017, ABC Corporation engaged XYZ inclo Weighted average interest rate (round to two decimal places, for example: 5.45%) (3 points) 4. Avoidable interest incurred during 2017 (7 points) SUSU ID Examinstructions Multiple Choice Question Problem Problem 2 Problem O i # E Search for anything 5. Total amount of interest cost to be capitalized during 2017 (1 point) 6. Prepare the journal entry for capitalization of interest (2 points) Problem Problem 2 Prob Evam instructions SVSUD Multiple Choice Questions
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