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On February 1, 2021, Handel's Dairy Company obtained a $1,700,000 construction loan with a 9% interest rate to build a new ice cream shop. The
| On February 1, 2021, Handel's Dairy Company obtained a $1,700,000 construction loan with a 9% interest rate to build a new ice cream shop. | |||||||||||||
| The loan was outstanding for the entire construction period. The project was completed on September 30, 2021. Expenditures in 2021 were as follows: | |||||||||||||
| Feb. 1 | $480,000 | ||||||||||||
| March 1 | 390,000 | ||||||||||||
| April 30 | 340,000 | ||||||||||||
| June 30 | 190,000 | ||||||||||||
| Sept. 30 | 140,000 | ||||||||||||
| Required: | |||||||||||||
| Calculate the interest capitalized in 2021. Do not round intermediate calculations. Show all of your work. | |||||||||||||
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Finance The Basics
Authors: Erik Banks
1st Edition
0415384575, 9780415384575
