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On January 1 , 2 0 2 4 , the company obtained a $ 3 million construction loan with a 1 2 % interest rate.
On January the company obtained a $ million construction loan with a interest rate. Assume the $ million loan is not specifically tied to construction of the building. The loan was outstanding all of and The company's other interestbearing debt included two longterm notes of $ and $ with interest rates of and respectively. Both notes were outstanding during all of and Interest is paid annually on all debt. The company's fiscal yearend is December Required: Using the weightedaverage interest method, answer the following questions: Calculate the amount of interest that Mason should capitalize in and using the weightedaverage method. What is the total cost of the building? Calculate the amount of interest expense that will appear in the and income statements. Complete this question by entering your answers in the tabs below. Req and Calculate the amount of interest that Mason should capitalize in and using the weightedaverage method. Calculate the amount of interest expense that will appear in the and income statements. Note: Round "Weightedaverage rate of all debt" to decimal places but do not round other intermediate calculations. Enter your answers in dollars rounded to the nearest whole number.
On January the company obtained a $ million construction loan with a interest rate. Assume the $
million loan is not specifically tied to construction of the building. The loan was outstanding all of and The
company's other interestbearing debt included two longterm notes of $ and $ with interest
rates of and respectively. Both notes were outstanding during all of and Interest is paid annually
on all debt. The company's fiscal yearend is December
Required:
Using the weightedaverage interest method, answer the following questions:
Calculate the amount of interest that Mason should capitalize in and using the weightedaverage
method.
What is the total cost of the building?
Calculate the amount of interest expense that will appear in the and income statements.
Complete this question by entering your answers in the tabs below.
Req and
Calculate the amount of interest that Mason should capitalize in and using the weightedaverage method.
Calculate the amount of interest expense that will appear in the and income statements.
Note: Round "Weightedaverage rate of all debt" to decimal places but do not round other intermediate calculations. Enter
your answers in dollars rounded to the nearest whole number.
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