Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please calculate the amount of borrowing cost to be capitalizaed On December 31, 2021, Oriole Group borrowed HK$3,240,000 at 12% payable annually to finance the

please calculate the amount of borrowing cost to be capitalizaed
image text in transcribed
On December 31, 2021, Oriole Group borrowed HK$3,240,000 at 12% payable annually to finance the construction of a new building In 2022, the company made the following expenditures related to this building: March 1, HK$388,800; June 1, HK$648,000, July 1, HK$1,620,000; December 1, HK$1,296,000. Additional information is provided as follows. 1. HK$4,320,000 Other debt outstanding 10-year, 11% bond, December 31, 2015, interest payable annually 6-year, 6% note, dated December 31, 2019, Interest payable annually March 1, 2022, expenditure included land costs of HK$162,000 Interest revenue earned in 2022 on funds related to specific borrowing HK$1.728,000 2. 3. HK$52.920 (a) Your answer is incorrect. Determine the amount of borrowing cost to be capitalized in 2022 in relation to the construction of the building. (Round answer to O dedmal places, eg. 5,275.) The amount of borrowing cost HK$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter 17 - Off-Balance-Sheet Shams

Authors: Kate Mooney

1st Edition

0071719393, 9780071719391

More Books

Students also viewed these Accounting questions