Question
On January 1, 2021, Kendall Inc. began construction of an automated cattle feeder system. The system was finished and ready for use on September 30,
On January 1, 2021, Kendall Inc. began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2022. Expenditures on the project were as follows:
| January 1, 2021 | $ | 290,000 | |
| September 1, 2021 | $ | 408,000 | |
| December 31, 2021 | $ | 408,000 | |
| March 31, 2022 | $ | 408,000 | |
| September 30, 2022 | $ | 290,000 | |
Kendall borrowed $786,000 on a construction loan at 12% interest on January 1, 2021. This loan was outstanding throughout the construction period. The company had $4,680,000 in 9% bonds payable outstanding in 2021 and 2022. Interest capitalized for 2021 was:
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Principles Of External Auditing
Authors: Brenda Porter, Jon Simon, David Hatherly
1st Edition
0471962120, 978-0471962120
