Question
Hi need help! TIA. Please show work. Google company started construction on special-purpose equipment in 2022. The equipment wasn't completed by December 31, 2022, but
Hi need help! TIA. Please show work.
Google company started construction on special-purpose equipment in 2022. The equipment wasn't completed by December 31, 2022, but is expected to be completed in 2023 at an estimated total cost of $1,300,000. These costs were incurred during 2022:
Expenditures | |
March 01, 2022 | $ 200,000 |
May 01, 2022 | 175,000 |
September 01, 2022 | 250,000 |
November 01, 2022 | 200,000 |
$ 825,000 |
To finance this project, Google issued a $300,000, 9% note payable. The note payable was issued on June 1, 2022. Google pays interest-only until the note matures in 2027.
In addition, the only other debt outstanding in 2022 was a note payable of $800,000 issued in 2020 and which carries a 10% annual rate. Google pays interest annually with the note principal maturing in 2025.
Questions:
A. Determine the weighted-average accumulated expenditures for 2022 ______________.
B. Determine interest to be charged to expense for 2022 ________________
C. Determine the avoidable interest for 2022 __________________
D. Determine the value of Construction in Process (Special Equipment) on the December 31, 2022 balance sheet. __________________
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