On June 1,2023, the Refract Company began construction of a new manufacturing plant. Work finished on the
Question:
On June 1,2023, the Refract Company began construction of a new manufacturing plant. Work finished on the plant on October 31,2024. Expenditures on the project were as follows ($ in millions): July 1, 2023 $54; October 1, 2023 $22; February 1, 2024 $30; April 1, 2024 $21; September 1, 2024 $20; October 1, 2024 $6. On July 1, 2023, Refract obtained a $70 million construction loan with a 6% interest rate. The loan was outstanding through the end of October, 2024. The company's only other interest-bearing debt was a long-tern note for $100 million with an interest rate of 8%. This note was outstanding during all of 2023 and 2024. The company's fiscal year-end is December 31. In computing the capitalized interest for 2024, Refract's average accumulated expenditures are
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley