Compute the amount of interest that agasse would capitalize

Reference no: EM132784965

Beacon Inc. received a gift of land and building in Twin Pines Park as an inducement to relocate. The land and buildings have fair values of $50.000 and $505.000.

Required:

Question 1: Prepare journal entries to record the above transactions.

Question 2: Record the entry on receiving a gift of Land and Building.

Agasse Industries began construction of a new facility and took out a $1.500.000.12% construction loan on April 1. 2021 Agasse made payments to the general contractor of $364.000 on April 1. $864.000 on August 31. and $464.000 on December 31.

Required:

Question 3: Compute the amount of interest that Agasse would capitalize in 2021

Reference no: EM132784965

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