PLEASE SHOW YOUR WORK Grab Manufacturing Co. purchased a 10-ton draw press at a cost of $181,000 with terms of 2/15, n/45. Payment was made within the discount period. Shipping costs were $3,900, which included $240 for insurance in transit. Installation costs totaled $11,200, which included $4,500 for taking out a section of a wall and rebuilding it because the press was too large for the doorway. The capitalized cost of the 10-ton draw press is:

$192,480. $195,980. $190,480. $197,480.

Holiday Laboratories purchased a high-speed industrial centrifuge at a cost of $460,000. Shipping costs totaled $22,000. Foundation work to house the centrifuge cost $8,000. An additional water line had to be run to the equipment at a cost of $2,000. Labor and testing costs totaled $6,100. Materials used up in testing cost $3,500. The capitalized cost is: $492,000. $482,000. $501,600. $500,000.

Liddy Corp. began constructing a new warehouse for its operations during the current year. In the year Liddy incurred interest of $10,000 on a working capital loan, and interest on a construction loan for the warehouse of $70,000. Interest computed on the average accumulated expenditures for the warehouse construction was $50,000. What amount of interest should Liddy expense for the year? $130,000. $30,000. $80,000. $10,000.

On July 1, 2016, Larkin Co. purchased a $400,000 tract of land that is intended to be the site of a new office complex. Larkin incurred additional costs and realized salvage proceeds during 2016 as follows: Demolition of existing building on site $75,000 Legal and other fees to close escrow 12,000 Proceeds from sale of demolition scrap 10,000 What would be the balance in the land account as of December 31, 2016? $400,000. $475,000. $477,000. $487,000.

On June 1, 2015, the Crocus Company began construction of a new manufacturing plant. The plant was completed on October 31, 2016. Expenditures on the project were as follows ($ in millions): July 1, 2015 54 October 1, 2015 22 February 1, 2016 30 April 1, 2016 21 September 1, 2016 20 October 1, 2016 6 On July 1, 2015, Crocus obtained a $70 million construction loan with a 6% interest rate. The loan was outstanding through the end of October, 2016. The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 8%. This note was outstanding during all of 2015 and 2016. The company's fiscal year-end is December 31. What is the amount of interest that Crocus should capitalize in 2015, using the specific interest method? $1.90 million. $1.95 million. $2.96 million. None of these answer choices are correct

On June 1, 2015, the Crocus Company began construction of a new manufacturing plant. The plant was completed on October 31, 2016. Expenditures on the project were as follows ($ in millions): July 1, 2015 54 October 1, 2015 22 February 1, 2016 30 April 1, 2016 21 September 1, 2016 20 October 1, 2016 6 On July 1, 2015,

Crocus obtained a $70 million construction loan with a 6% interest rate. The loan was outstanding through the end of October, 2016. The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 8%. This note was outstanding during all of 2015 and 2016. The company's fiscal year-end is December 31. In computing the capitalized interest for 2016, Crocus' average accumulated expenditures are: $46.30 million. $103.54 million. $122.30 million. $124.25 million.

On June 1, 2015, the Crocus Company began construction of a new manufacturing plant. The plant was completed on October 31, 2016. Expenditures on the project were as follows ($ in millions): July 1, 2015 54 October 1, 2015 22 February 1, 2016 30 April 1, 2016 21 September 1, 2016 20 October 1, 2016 6 On July 1, 2015,

Crocus obtained a $70 million construction loan with a 6% interest rate. The loan was outstanding through the end of October, 2016. The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 8%. This note was outstanding during all of 2015 and 2016. The company's fiscal year-end is December 31. What is the amount of interest that Crocus should capitalize in 2016, using the specific interest method (rounded to the nearest thousand dollars)? $7,248,000 (rounded). $7,283,000 (rounded). $8,740,000 (rounded). None of these answer choices are correct.

Liddy Corp. began constructing a new warehouse for its operations during the current year. In the year Liddy incurred interest of $30,000 on a working capital loan, and interest on a construction loan for the warehouse of $60,000. Interest computed on the average accumulated expenditures for the warehouse construction was $50,000. What amount of interest should Liddy expense for the year? $30,000. $40,000. $90,000. $140,000.