Question
On March 1, 2025, Bramble Corp. purchased land for an office site by paying $2730000 cash. Bramble began construction on the office building on March
On March 1, 2025, Bramble Corp. purchased land for an office site by paying $2730000 cash. Bramble began construction on the office building on March 1. The following expenditures were incurred for construction:
| Date | Expenditures |
| March 1, 2025 | $1810000 |
| April 1, 2025 | 2560000 |
| May 1, 2025 | 4420000 |
| June 1, 2025 | 4770000 |
The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3610000 was borrowed on March 1, 2025 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2025 was a $1490000, 12%, 6-year note payable dated January 1, 2025.
The actual interest cost incurred during 2025 was ?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the actual interest cost incurred during 2025 we need to determine the interest expense ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
18th Edition
1119790972, 9781119790976
