Question
On January 2, 2017, Sheridan Company began the construction of a new citrus processing plant. The automated plant was finished and ready for use on
On January 2, 2017, Sheridan Company began the construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2018. Expenditures for the construction were as follows:
| January 2, 2017 | $ 608000 |
| September 1, 2017 | 1812000 |
| December 31, 2017 | 1812000 |
| March 31, 2017 | 1812000 |
| September 30, 2018 | 1209000 |
Sheridan Company borrowed $3340000 on a construction loan at 12% interest on January 2, 2017. This loan was outstanding during the construction period. The company also had $12100000 in 9% bonds outstanding in 2017 and 2018.
The interest capitalized for 2017 was:
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
15th edition
978-1118159644, 9781118562185, 1118159640, 1118147294, 978-1118147290
