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I am having trouble calculating these answers. The answers to each question is in red, however I need help to see how those answers were
I am having trouble calculating these answers. The answers to each question is in red, however I need help to see how those answers were reached.
Example 10-3 on November 1, 2017, JoHop Company contracted Pfeifer Construction Co. to construct a building for $1,200,000 on land costing $100,000, purchased from the contractor and included in the first payment. JoHop made the following payments to the construction company during 2018. 1-Jan-18 $ 100,000 Purchased land 1-Feb-18 $ 80.000 Architect's fees on building plans 1-Mar-18 1 $ 40.000 Excavation cost for new building 1-May-18 $ 480,000 Construction payment 1-Nov-18 $ 370,000 Construction payment 31-Dec-18 $ 130,000 Final construction payment JoHop had the following debt during 2018: Borrowed $400,000 on a 2-year construction loan at 15% interest on 1/1/18. Had a $150,000 note payable outstanding all year at 12%. Had a $1,100,000 bond payable outstanding all year at 9% interest. What is the weighted average accumulated expenditures? What is the weighted average interest rate? What is the amount of avoidable interest? What is the amount of actual interest? What is the amount of interest capitalized? $588,333 9.36% $ 77,628 $177,000 $ 77,628 Example 10-3 on November 1, 2017, JoHop Company contracted Pfeifer Construction Co. to construct a building for $1,200,000 on land costing $100,000, purchased from the contractor and included in the first payment. JoHop made the following payments to the construction company during 2018. 1-Jan-18 $ 100,000 Purchased land 1-Feb-18 $ 80.000 Architect's fees on building plans 1-Mar-18 1 $ 40.000 Excavation cost for new building 1-May-18 $ 480,000 Construction payment 1-Nov-18 $ 370,000 Construction payment 31-Dec-18 $ 130,000 Final construction payment JoHop had the following debt during 2018: Borrowed $400,000 on a 2-year construction loan at 15% interest on 1/1/18. Had a $150,000 note payable outstanding all year at 12%. Had a $1,100,000 bond payable outstanding all year at 9% interest. What is the weighted average accumulated expenditures? What is the weighted average interest rate? What is the amount of avoidable interest? What is the amount of actual interest? What is the amount of interest capitalized? $588,333 9.36% $ 77,628 $177,000 $ 77,628Step by Step Solution
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