Answered step by step
Verified Expert Solution
Question
1 Approved Answer
i need help with this question, i dont understand. Crane inc, is a book distributor that had been operating in its original facility since 1990
i need help with this question, i dont understand.
Crane inc, is a book distributor that had been operating in its original facility since 1990 . The increase in certification programs and continuing education requirements in several professions has contributed to an annual growth rate of 15% for Crane since 2015 . Crane' original facility became obsolete by early 2020 because of the increased sales volume and the fact that Crane now carries CDs In addition to books. On June 1, 2020, Crane contracted with Black Construction to have a new building constructed for $4,480,000 on land owned by Crane. The payments made by Crane to Black Construction are shown in the schedule below. Constructicn was completed and the bullding was ready for occupancy on May 27,2021 . Cranc fad no new borrowings directiy associated with the new builing but had the following debt outstanding at May 31 . 2021 , the end of its niscat year. Construction was completed and the building was ready for occupancy on May 27, 2021. Crane had no new borrowings directly associated with the new building but had the following debt outstanding at May 31,2021 , the end of its fiscal year. 10%,5 year note payable of $2,240,000, dated Aprit 1, 2017, with interest payable annually on April 1. 12%,10-year bond issue of $3,360,000 sold at par on June 30, 2013, with interest payable annually on June 30. The new building qualifies for interest capitalization. The effect of capitalizing the interest on the new bulding, compared with the effect of expensing the interest, is material. (a) Compute the welghted-average accumulated expenditures on Cranes new buliding during the capitalization period. Weighted-fverago Accumulated Expenditures: 5 Compute the avoidable interest on Crane's new building. (Round intermedlate percentage calculation to 1 decimal place, eg. 15.6% and final answer to 0 decimal places, eg. 5,125.) Avoidable Interest. eTextbook and Media Attempte: 0 of 5 used (c) 50the interesteost of Crane Ine is capitalized for the year ended May 31.2021. Compute the amount of eachiteins fhat must be disciosed in Crane's firuncial statements. Some interest cost of Crane Inc, is capitalized for the year ended May 31, 2021. Compute the amount of each items that must be disclosed in Crane's financial statements Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started