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Please Answer ALL parts. Thanks Ocean Ltd has recently engaged in a project for building a shipyard. It has the following time table for payment
Please Answer ALL parts. Thanks
Ocean Ltd has recently engaged in a project for building a shipyard. It has the following time table for payment of material and labour cost. The construction work began on 1 February, 2016 and was completed on 31 December 2016. During the year, the company specifically issued the following for financing the construction works: exist2,000,000 of 10-year, 6% bond payable, issued on 1 February, 2016 with interest payable annually on 1 February. exist1, 500,000 ordinary shares were issued on 1 July, 2016. The company also has the following general debts outstanding: exist600,000, 4%, 5-year note payable dated 1 January, 2012* exist1, 800,000, 8%, 8-year note payable dated 1 January, 2014* "Interest on both notes payable will be payable annually on 1 January. The company has its financial year ended on 31 December. Required: Determine for Use year ended 31 December, 2016, the amounts of each of the following: (a) The weighted-average accumulated expenditure (the "WAAC") for capitalization of interest cost (b) Avoidable interest. (c) The amount of interest capitalisation
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