Reference no: EM131118063
Capitalization of Interest McPherson Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,000,000 on January 1, 2010. McPherson expected to complete the building by December 31, 2010. McPherson has the following debt obligations outstanding during the construction period.
Construction loan-12% interest, payable semiannually, issued
December 31, 2009 $2,000,000
Short-term loan-10% interest, payable monthly, and principal payable
at maturity on May 30, 2011 1,600,000
Long-term loan-11% interest, payable on January 1 of each
year. Principal payable on January 1, 2014 1,000,000
(Carry all computations to two decimal places.)
(a) Assume that McPherson completed the office and warehouse building on December 31, 2010, as planned at a total cost of $5,200,000, and the weighted average of accumulated expenditures was $3,800,000. Compute the avoidable interest on this project.
(b) Compute the depreciation expense for the year ended December 31, 2011. McPherson elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $300,000.
|
Compare and contrast the characters of odysseus
: Compare and contrast the characters of Odysseus and his companions and those of Ulysses Everett McGill, Pete and Delmar. Does the 'journey' of Ulysses preserve the essential meaning of the journey of Odysseus in the Homeric epic?
|
|
Discuss the importance of the calculation and interpretation
: Discuss the importance of the calculation and interpretation of ratios, to complete an effective financial ratio analysis.
|
|
Create a scene as shown below with a blimp
: Create a scene as shown below with a blimp (Vehicle) and a dragon (Medieval). In this fantasy scene, the dragon has found a blimp and is curious. The dragon flies around the blimp to check it out. Write a program to have the dragon move to the bli..
|
|
Would you have included more and different variables
: Determine what question(s) the authors are trying to answer through this research. Determine the hypothesis being tested and the concepts that were applied in this process. Evaluate the article and critique the statistical analysis employed in the st..
|
|
Capitalization of interest mcpherson furniture
: Capitalization of Interest McPherson Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,000,000 on January 1, 2010.
|
|
What is the effect of assets and liabilities from this trans
: Count Cash pays a weekly payroll of $170,000 that includes federal taxes withheld of $25,400, FICA taxes withheld of $15,780, and 401(k) withholdings of $18,000. What is the effect of assets and liabilities from this transaction?a. Assets decrease $1..
|
|
Macro-level factors influence sexuality
: 1. How do macro-level factors influence sexuality? 2. Explain the sexual scripts for men and women.
|
|
Where m refers to dollars of profit is the manager a risk
: Where M refers to dollars of profit Is the manager a risk seeker, risk neutral, or risk averter? Why?
|
|
Correction of improper cost entries plant acquisitions
: Correction of Improper Cost Entries Plant acquisitions for selected companies are presented below
|