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On January 1, 20x1, Entity A started the construction of a qualifying asset. The qualifying asset is financed through general borrowings. The average expenditures
On January 1, 20x1, Entity A started the construction of a qualifying asset. The qualifying asset is financed through general borrowings. The average expenditures during the year amounted to $9,500,000. The capitalization rate is 11%. The actual borrowing costs incurred during the period were $1,990,000. How much are the borrowing costs eligible for capitalization?
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To determine the borrowing costs eligible for capitalization we need to calculate the amount of borr...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
