Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I want explanation and correction answers On January 1, 2018, the Highlands Company began construction on a new manufacturing facility for its own use. The
I want explanation and correction answers
On January 1, 2018, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2019. The company borrowed $1,750,000 at 8% on January 1 to help finance the construction. In addition to the construction loan. Highlands had the following debt outstanding throughout 2018: $8.999,990, 13% bonds $2,080,890, 8x long-term note Hed Construction expenditures incurred during 2018 were as follows: January 1 March 31 June 30 September 30 December 31 $ 760,000 1,360,000 992,090 760, ege 560,000 Required: Calculate the amount of Interest capitalized for 2018 using the specific Interest method. (Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (Le. 0.123 should be entered as 123%).) Date January 1 March 31 June 30 September 30 December 31 Accumulated expenditure Expenditure S 760.000 X 380,000 XX 992,000 X 760 000 X 560,000 QX $ 3.432.000 Weight 12/12 = 9/12 = 6/12 WIE 3.12 0/12 IN Average $ 780,000 270,000 496,000 190,000 0 $ 1,718.000 Average Interest Rate Capitalized Interest S 1716.000 Average accumulated expenditures Construction loan Other loans (not construction) = 8,000,000 X X S 2,000,000 $ 13.0 66% 8.00 = $ 1.040,000 160.000 S 1.200.000 She took Up On one beatStep 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