Question
On January 2, 2020, Sunland Company began construction of a new citrus processing plant. The automated plant was finished and ready for use on September
On January 2, 2020, Sunland 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:
January 2, 2020 $ 597000
September 1, 2020 1812000
December 31, 2020 1812000
March 31, 2021 1812000
September 30, 2021 1215000
Sunland Company borrowed $3370000 on a construction loan at 10% interest on January 2, 2020. This loan was outstanding during the construction period. The company also had $12480000 in 7% bonds outstanding in 2020 and 2021. The interest capitalized for 2020 was:
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Financial Accounting The Impact On Decision Makers
Authors: Curtis L. Norton, Gary A. Porter
6th Edition
9781439037119, 1439037116
