Question
San Mateo Corporation had the following outstanding loans during 2016 and 2017. General loans: 10,000,000 10% 15,000,000 12% Specific construction loan: 5,000,000 10% The entity
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San Mateo Corporation had the following outstanding loans during 2016 and 2017.
General loans:
10,000,000 10%
15,000,000 12%
Specific construction loan:
5,000,000 10%
The entity began the construction of a new building on January 4, 2016 and the building was completed on June 30, 2017. The following expenditures were made:
January 4, 2016 - 5,000,000
March 31, 2016 - 3,000,000
August 31, 2016 - 7,000,000
December 1, 2016 - 5,000,000
February 28, 2017 - 4,000,000
What is the Cost of new building on June 30, 2017?
What is the interest expense on December 31, 2016?
What is the borrowing cost to be capitalized on December 31, 2016?
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Accounting Research In The United States The Euro Zone And Beyond
Authors: Aida Sy
0988919362, 978-0988919365
