Question
On January 2, 2020, Oriole Company began construction of a new citrus processing plant. The automated plant was finished and ready for use on September
On January 2, 2020, Oriole Company began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows:
Oriole Company borrowed $3300000 on a construction loan at 10% interest on January 2, 2020. This loan was outstanding during the construction period. The company also had $13560000 in 7% bonds outstanding in 2020 and 2021.
The interest capitalized for 2020 was:
-
$482340
-
$158200
-
$474600
-
$120660
Answer:
January 2, 2020 $ 603000 |
September 1, 2020 1810800 |
December 31, 2020 1810800 |
March 31, 2021 1810800 |
September 30, 2021 1218000 |
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