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On Jamuary 1,2025, Ohno, Inc. signed a fixed-price contract to have Builder Associates construct a major plant facility at a cost of 54,000,000. 1t was

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On Jamuary 1,2025, Ohno, Inc. signed a fixed-price contract to have Builder Associates construct a major plant facility at a cost of 54,000,000. 1t was estimated that it would take 3 years to complete the project. Ako on January 1, 202.5, to finance the: construction cost, Ohno borrowed $4,000.000 payable in 10 annual instalments of $400,000, plus interest at the rate of 10% During 2025, Ohno made deposits and progress payments totaling $1,500,000 under the controct: the weighted-average amount of accumulated expenditures was $800,000 for the year. The excess borrowed funds were invested in short-term securities, from which Ohno realized investment income of $250,000. What amount should Ohino report as capitalized interest at December 31, 2025? Capitalized interest eTextbook and Mcdia During 2025, Zngitova Corporation constructed and manufactured certain assets and incurred the following interest costs in connection with those activities. All of these assets required an extended period of time for completion: Assuming the effect of interest capitalization istmbterkal, what is the coral amount of interest costs fo be cieitalized? Situation III Fleming, Inc. has a fiscal year ending April 30 . On May 1, 2025, Fleming borrowed $10,000,000 at 11% to finance construction of its own building. Repayments of the loan are to commence the month following completion of the building. During the year ended April 30,2026, expenditures for the partially completed structure totaled $7,000,000 (weighted-average accumulated expenditures were $3,500,000 ). Interest earned on the unexpended por tion of the loanamounted to $650,000 for the year. How much should be shown as capitalized interest on Flemings financial statements at April 30,2026? Capitalized interest on Fleming's financial statements 5. eTextbook and Media On Jamuary 1,2025, Ohno, Inc. signed a fixed-price contract to have Builder Associates construct a major plant facility at a cost of 54,000,000. 1t was estimated that it would take 3 years to complete the project. Ako on January 1, 202.5, to finance the: construction cost, Ohno borrowed $4,000.000 payable in 10 annual instalments of $400,000, plus interest at the rate of 10% During 2025, Ohno made deposits and progress payments totaling $1,500,000 under the controct: the weighted-average amount of accumulated expenditures was $800,000 for the year. The excess borrowed funds were invested in short-term securities, from which Ohno realized investment income of $250,000. What amount should Ohino report as capitalized interest at December 31, 2025? Capitalized interest eTextbook and Mcdia During 2025, Zngitova Corporation constructed and manufactured certain assets and incurred the following interest costs in connection with those activities. All of these assets required an extended period of time for completion: Assuming the effect of interest capitalization istmbterkal, what is the coral amount of interest costs fo be cieitalized? Situation III Fleming, Inc. has a fiscal year ending April 30 . On May 1, 2025, Fleming borrowed $10,000,000 at 11% to finance construction of its own building. Repayments of the loan are to commence the month following completion of the building. During the year ended April 30,2026, expenditures for the partially completed structure totaled $7,000,000 (weighted-average accumulated expenditures were $3,500,000 ). Interest earned on the unexpended por tion of the loanamounted to $650,000 for the year. How much should be shown as capitalized interest on Flemings financial statements at April 30,2026? Capitalized interest on Fleming's financial statements 5. eTextbook and Media

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