User Account

All Pages

Find the amount of borrowing costs to be capitalized

Assignment Help Accounting Basics
Reference no: EM132765514

Question: Sneezy Company constructs a new head office building commencing on September 1, 2016 and was completed at December 31, 2016. Directly attributable expenditure on this asset is P400,000 in September 2016 and P350,000 at the beginning of each month from October to December 2016. Sneezy Company has not taken out any specific borrowings to finance the construction of the asset, but has incurred finance costs on its general borrowings during the construction period.

During the year Sneezy Company had 9% debentures in issue with a face value of P3,000,000 and an overdraft of 1,200,000, which increased to 1,500,000 in December 2016 on which interest was paid at 12%.

The amount of borrowing costs to be capitalized in relation to the building construction for 2016 is?

Reference no: EM132765514

Questions Cloud

Calculate the gross profit for the year and inventory value : The closing inventory includes £30,000, Calculate the gross profit for the year and the inventory value in the year-end Statement of financial position.
Ed revenues are affected by many variables : ED revenues are affected by many variables such as, patients without medical insurance coverage
What is the quantity and cost amount you have left : Inventory 10/20 - 6 Decorative Spotlights are defective and sent back to the vendor for Credit. 10/15 - Purchase of 10 Decorative Spotlights for $10 each.
What the amortization of the patent should be : n January 2020, Fides paid 20,000 for legal fees in successful defense of the patent. The amortization of the patent for 2020 should be
Find the amount of borrowing costs to be capitalized : Sneezy Company constructs a new head office building commencing on September 1, 2016 and was completed at December 31, 2016. Directly attributable expenditure.
Operating budget and capital budget : Discuss the difference between an operating budget and a capital budget. What are the steps in creating each budget?
What is the common underline phenomenon in aphasia : What is the common underline phenomenon in aphasia and apraxia patients? Write down about the tests use for it?
Distinguish between formal and informal organization : Distinguish between formal and informal organization/structure, and discuss how the informal organization can affect the formal one. The response must be typed.
Draw up a statement of financial position for carlisle ltd : Draw up a statement of financial position for Carlisle Ltd as 31 March 2020, from the following information. Long term borrowing from bank 15,000

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd