Question
On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures
On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures on the project were as follows:
| January 1, 2018 | $ | 300,000 |
|
| September 1, 2018 | $ | 450,000 |
|
| December 31, 2018 | $ | 450,000 |
|
| March 31, 2019 | $ | 450,000 |
|
Dreamworld had the following debt obligations outstanding during both years:
Construction loan, 10% $500,000
Long-term note, 12% $2,500,000
Required: What would Dreamworld's capitalized interest be in 2019 (assuming interest from 2018 does not compound in 2019)?
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The Only Ethereum Investing Book You Ll Ever Need
Authors: Freeman Publications
1st Edition
1915404045, 978-1915404046
