Question
On January 1, 2024, a company began construction of an automated cattle feeder system. The system was finished and ready for use on September 30,
On January 1, 2024, a company began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2025. Expenditures on the project were as follows: January 1, 2024 $ 344,000 September 1, 2024 $ 408,000 December 31, 2024 $ 408,000 March 31, 2025 $ 408,000 September 30, 2025 $ 344,000 The company borrowed $786,000 on a construction loan at 12% interest on January 1, 2024. This loan was outstanding throughout the construction period. The company had $4,680,000 in 12% bonds payable outstanding in 2024 and 2025. Interest (using the specific interest method) capitalized for 2025 was:
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz
3rd edition
132890542, 978-0132890540
