Question
On January 1, 2021, Fedex Corp. started to build a grain processing system. It finished construction on September 30, 2022. Expenditures on the project were
On January 1, 2021, Fedex Corp. started to build a grain processing system. It finished construction on September 30, 2022. Expenditures on the project were as follows:
| January 1, 2021 | $ | 295,000 | |
| September 1, 2021 | $ | 414,000 | |
| December 31, 2021 | $ | 414,000 | |
| March 31, 2022 | $ | 414,000 | |
| September 30, 2022 | $ | 295,000 | |
Fedex Corp. borrowed $788,000 on a construction loan at 7% interest on January 1, 2021. This loan was outstanding throughout the construction period. The company had $4,690,000 in 7% bonds payable outstanding in 2021 and 2022. Interest (using the specific interest method) capitalized for 2021 was:
Multiple Choice
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$36,310.
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$54,310.
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$30,310.
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$42,310.
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Financial Accounting For Executives And MBAs
Authors: Wallace, Simko, Ferris
4th Edition
1618531980, 9781618531988
