Question
On January 2, 2025, Concord Corporation began construction of a new citrus processing plant. The automated plant was finished and ready for use on September
On January 2, 2025, Concord Corporation began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2026. Expenditures for the construction were as follows:
January 2, 2025
$ 607000
September 1, 2025
1803600
December 31, 2025
1803600
March 31, 2026
1803600
September 30, 2026 1213000
Concord Corporation borrowed $3320000 on a construction loan at 10% interest on January 2, 2025. This loan was outstanding during the construction period. The company also had $11520000 in 7% bonds outstanding in 2025 and 2026.
The interest capitalized for 2025 was:
A $120820
B $134400
C $486180
D $403200
On January 2, 2025, Concord Corporation began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2026. Expenditures for the construction were as follows: Concord Corporation borrowed $3320000 on a construction loan at 10% interest on January 2, 2025. This loan was outstanding during the construction period. The company also had $11520000 in 7% bonds outstanding in 2025 and 2026. The interest capitalized for 2025 was: $120820 $134400 $486180 $403200
On January 2, 2025, Concord Corporation began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2026. Expenditures for the construction were as follows:
January 2, 2025
$ 607000
September 1, 2025
1803600
December 31, 2025
1803600
March 31, 2026
1803600
September 30, 2026 1213000
Concord Corporation borrowed $3320000 on a construction loan at 10% interest on January 2, 2025. This loan was outstanding during the construction period. The company also had $11520000 in 7% bonds outstanding in 2025 and 2026.
The interest capitalized for 2025 was:
A $120820
B $134400
C $486180
D $403200
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Management Foundations A Pacific Rim Focus
Authors: Kathryn Bartol, Margaret Tein, Graham Matthews, Bishnu Sharma, Brenda Scott Ladd
3rd Edition
978-0070284944, 0070284946
