What were the weighted-average accumulated expenditures

Assignment Help Financial Management

Reference no: EM131991185

On January 2, 2012, Dessin Ltd began construction of a new citrus processing plant. The automated plant was finished and ready for use on December 31, 2012. Expenditures for the construction were as follows: January 2, 2012 $150,000 March 1, 2012 700,000 September 1, 2012 500,000 December 1, 2012 180,000 December 31, 2012 200,000 Dessin Ltd borrowed $500,000 on a construction loan at 10% interest on January 2, 2012. This loan was outstanding during the construction period. The company also had $3,500,000 in 8% bonds outstanding and a 5-year loan of 1,200,000 at 11% outstanding in 2012 and 2013.

a) What were the weighted-average accumulated expenditures for 2012?

b) What is the weighted-average interest rate used for interest capitalization purposes in 2012?

c) What is the total amount of the interest capitalized for 2012?

d) What is the actual interest for the company in 2012?

e) What is the total amount of the interest capitalized for 2012? f) What is the total amount of the interest expensed for 2012? Show your computations.

Reference no: EM131991185

Questions Cloud

Calculate the depreciation expense for corky bedding corp : The firm’s tax rate is 30 percent. Calculate the depreciation expense for Corky’s Bedding Corp.

What is her portfolio beta and portfolio new beta be : An individual has $15,000 invested in a stock with a beta of 0.6. what is her portfolio's beta? What would your portfolio's new beta be?

What should delphinium do based upon these facts : Both land parcels have been held for more than one year. What should Delphinium do based upon these facts?

Macrs depreciation schedule-net present value of project : What is the net present value of the project? The discount rate is 12%. Use the MACRS depreciation schedule.

What were the weighted-average accumulated expenditures : What were the weighted-average accumulated expenditures for 2012? What is the actual interest for the company in 2012?

What a person would give up to get away from risk : If you were playing a game of deal or no deal and there was 20 suitcases left. what a person would give up to get away from risk.

What would these calculations measure : If you were playing a game of deal or no deal and there was 20 suitcases left. So what would these calculations measure?

Held for investment was destroyed in flood : A sculpture that Tulip & Co. held for investment was destroyed in a flood. Compute Tulip's net gain or loss, and identify how it would be treated.

Balance for net operating working capital : Duffy’s free cash flow for the year was $411 million. Calculate the end-of-year balance for net operating working capital.

User Account

All Pages