Question
Harrisburg Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,015,100 on January 1,
Harrisburg Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,015,100 on January 1, 2014. Harrisburg expected to complete the building by December 31, 2014. Harrisburg has the following debt obligations outstanding during the construction period.
Construction loan11% interest, payable semiannually, issued December 31, 2013 | $2,015,200 | |
Short-term loan9% interest, payable monthly, and principal payable at maturity on May 30, 2015 | 1,628,700 | |
Long-term loan10% interest, payable on January 1 of each year; principal payable on January 1, 2018 | 1,016,40 |
Assume that Harrisburg completed the office and warehouse building on December 31, 2014, as planned at a total cost of $5,215,200, and the weighted average amount of accumulated expenditures was $3,812,200. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to 0 decimal places, e.g. 5,275.) answer: 390231
Compute the depreciation expense for the year ended December 31, 2015. Harrisburg elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $309,000. (Round answer to 0 decimal places, e.g. 5,275.)
I found the answer to be 163540 and 176154, but my homework is saying that is not the correct answer for deprecation expense
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