Question
Use the information below to answer questions 4 through 6 question 4) Arlington Co. is constructing a building. Construction began on January 1 st and
Use the information below to answer questions 4 through 6
question 4)
Arlington Co. is constructing a building. Construction began on January 1stand completed on December 31.
Expenditures were $2,400,000 on March 1, $1,980,000 on June 1, and $3,000,000 on December 31.
Debt Outstanding for Construction
$1,200,000 on January 1 on a 5-year, 12% note payable.
General Debt outstanding
10%, 3-year, $1,400,000 note payable
12%, 4-year, $4,600,000 note payable.
Other information
Interest revenues of $25,000 earned from specific borrowing
Accordingly, The weighted average of expenditure is:
5)Arlington Co. is constructing a building. Construction began on January 1stand completed on December 31.
Expenditures were $2,400,000 on March 1, $1,980,000 on June 1, and $3,000,000 on December 31.
Debt Outstanding for Construction
$1,200,000 on January 1 on a 5-year, 12% note payable.
General Debt outstanding
10%, 3-year, $1,400,000 note payable
12%, 4-year, $4,600,000 note payable.
Other information
Interest revenues of $25,000 earned from specific borrowing
Accordingly, Interest to capitalize is (nearest $1):
6)
Arlington Co. is constructing a building. Construction began on January 1stand completed on December 31.
Expenditures were $2,400,000 on March 1, $1,980,000 on June 1, and $3,000,000 on December 31.
Debt Outstanding for Construction
$1,200,000 on January 1 on a 5-year, 12% note payable.
General Debt outstanding
10%, 3-year, $1,400,000 note payable
12%, 4-year, $4,600,000 note payable.
Other information
Interest revenues of $25,000 earned from specific borrowing
Interest expense to report in the income statement is (nearest $1):
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