, calculate the amount of interest capitalized for the year

Assignment Help Financial Accounting

Reference no: EM13132023

"A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $518,000; March 31, $608,000; June 30, $402,000; October 30, $606,000. To help finance construction, the company arranged a 7% construction loan on January 1 for $705,000. The company’s other borrowings, outstanding for the whole year, consisted of a $3.04 million loan and a $5.07 million note with interest rates of 8% and 6%, respectively.

Assuming the company uses the specific interest method, Calculate the amount of interest capitalized for the year. (Round the Weighted-average rate to two decimal places (e.g. 12.34%) for calculation purposes. Round your final answer to the nearest dollar amount. Enter your answer in dollars not in millions.)

Reference no: EM13132023

Questions Cloud

Why traditional functional income statement is not suitable : Explain why a traditional functional income statement is not suitable for the Cost Volume Profit (CVP) analysis. What is the key point that makes a contribution approach income statement useful for CVP relationship analysis.

Integer programming model : The Decision Sciences department head at a university will be scheduling faculty to teach courses during the coming fall semester.

What is the final volume : If the pressure of 50.0 mL of oxygen gas at 100 °C increases from 735 mm Hg to 925 mm Hg, what is the final volume? Assume temperature remains constant.

Plotting data and calculations by using venn diagrams : A survey of fruit tree growers showed the following: How many grew exactly two of these three? How many fruit tree growers were surveyed?

, calculate the amount of interest capitalized for the year : Assuming the company uses the specific interest method, Calculate the amount of interest capitalized for the year. (Round the Weighted-average rate to two decimal places

Treatment with ozone followed by hydrolysis : A compound of forumula C14H12 gave a positive Baeyer test and burned with a yellow, sooty flame. Treatment with ozone followed by hydrolysis in the presence of zinc gave formaldehyde as one of the products.

Estimate the probability of finding gas in site : Given that the landowner pays for the soundings test and the test indicates that gas is present, what is the landowner's revised estimate of the probability of finding gas in this site?

Non-controlling interest income : Jeremy reported net income of $50,000 for 2003. Non-controlling interest income that will appear in the consolidated income statement for 2003 is:

Compute the basic earnings per share : Compute the basic earnings per share for 2013. Stock Options Exercisable at the option price of $25 per share. Average market price in 2013, $30

User Account

All Pages