Reference no: EM13913667
Need help on Chapter 10, Problem 10-10 On January 1, 2013, the Mason Manufacturing company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2014. Expenditures on the project were as follows: January 1, 2013 1,000,000 March 1, 2013 600,000 June 30, 2013 800,000 October 1, 2013 600,000 January 31, 2014 270,000 April 30, 2014 585,000 August 31, 2014 900,000 On January 1, 2013, the company obtained a $3 million constrruction loan with a 10% interest rate. The loan was outstanding all of 2013 and 2014. The company's other interest-bearing debt included two long-term notes of $4,000,000 and $6,000,000 with interest rates of 6% and 8% respectively. Both notes were outstanding during all of 2013 and 2014. Interest is paid annually on all debt. The company's fiscal year-end is December 31. Required: 1) Calculate the amount of interest that Mason should capitalize in 2013 and 2014 using the weighted average method. 2) What is the total cost of the building? 3) Calculate the amount of interest expense that will appear in the 2013 and 2014 income statements. Help is very much appreciated
|
Borrowing money from a bank versus issuing public bonds
: A firm has a choice between borrowing money from a bank versus issuing public bonds for the same amount. Give an example of one item (a ratio or a number, or any other quantitative item but not something like a feeling or impression) that will be par..
|
|
Explain how each item is important for one party
: Explain how each item is important for one party but not the other given that both are considering the same loan (in terms of amount of money, length of time, borrowing firm).
|
|
About the stock repurchases
: Beta Industries has net income of $3,100,000, and it has 350,000 shares of common stock outstanding. The company's stock currently trades at $48 a share. Beta is considering a plan in which it will use available cash to repurchase 30% of its shares i..
|
|
General supermarket chains
: General supermarket chains-Drugstore chains
|
|
Weighted average method
: Calculate the amount of interest that Mason should capitalize in 2013 and 2014 using the weighted average method. 2) What is the total cost of the building? 3) Calculate the amount of interest expense that will appear in the 2013 and 2014 income stat..
|
|
Portfolio analysis-calculate standard deviation of returns
: You have been given the expected return data shown in the first table on three assets -F, G, and H- over the period 2016-2019. Expected return. Calculate the expected return over the 4-year period for each of the three alternatives. Calculate the sta..
|
|
Contracts are within the statute of frauds
: In most states the following types of contracts are within the statute of frauds.a. Contracts for the sale of an interest in personal property.b. Contracts that can be performed within a year from the date of their formation.c. Contracts for the sale..
|
|
Masse for the sale of an officebuilding
: On May 1, 2005, Eckerly Realty Inc. mailed a written offer to Masse for the sale of an officebuilding. The offer included an express term that it would expire on June 30, 2005 if theacceptance was not delivered into the hands of the offeror by the ex..
|
|
Firms total market value is unchanged by the split
: Becker Financial recently declared a 2-for-1 stock split. Prior to the split, the stock sold for $80 per share. If the firm's total market value is unchanged by the split, what will the stock price be following the split?
|