During 2012, Bass Corporation constructed assets costing $2,000,000. The weighted-average accumulated expenditures on these assets during 2012 was $600,000. To help pay for construction, $880,000 was borrowed at 10% on January 1, 2012, and funds not needed for construction were temporarily invested in short-term securities, yielding $18,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a $1,000,000, 10-year, 9% note payable dated January 1, 2006. What is the amount of interest that should be capitalized by Bass during 2012?
Question 3 options:
$120,000. |
|
$60,000. |
|
$116,800. |
|
$188,800. |
Interest Rate | |||
Total accumulated expenditure | 6,00,000 | ||
Borrowed | 8,80,000 | 10% | 88000 |
Balance | ( 2,80,000) | 9% | (25,200) |
62800 |
During 2012, Bass Corporation constructed assets costing $2,000,000. The weighted-average accumulated expenditures on these assets during...
During 2016, Glass Corporation constructed assets costing $1,000,000. The weighted-average accumulated expenditures on these assets during 2016 was $600,000. To help pay for construction, $440,000 was borrowed at 10% on January 1, 2016, and funds not needed for construction were temporarily invested in short-term securities, yielding $9,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a $500,000, 10-year, 9% note payable dated January 1, 2005. The amount of interest that...
During 2020, Waterway Industries incurred weighted-average accumulated expenditures of $1620000 during construction of assets that qualified for capitalization of interest. The only debt outstanding during 2020 was a $2030000, 11%, 5-year note payable dated January 1, 2020. What is the amount of interest that should be capitalized by Waterway during 2020?
During 2017, Barden Building Company constructed various assets at a total cost of $12,600,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2017 were $8,742,000. The company had the following debt outstanding at December 31, 2017: 1096, 5-year note to finance construction of various assets, dated January 1, 2017, with interest payable annually on January 1 1. $5,262,000 6,123,000 3,061,500 12%, ten-year bonds issued at par on December 31, 2011, with interest payable annually on...
During 2017, Barden Building Company constructed various assets at a total cost of $12,600,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2017 were $8,742,000. The company had the following debt outstanding at December 31, 2017: 1096, 5-year note to finance construction of various assets, dated January 1, 2017, with interest $5,262,000 6,123,000 3,061,500 payable annually on January 1 12%, ten-year bonds issued at par on December 31, 2011, with interest payable annually on December...
When funds are borrowed to pay for construction of assets that qualify for capitalization of interest, the excess funds not needed to pay for construction may be temporarily invested in interest-bearing securities. Interest earned on these temporary investments should be O recognized as revenue of the period O multiplied by an appropriate interest rate to determine the amount of interest to be capitalized O used to reduce the cost of assets being constructed. O offset against interest cost incurred during...
Compute the weighted average accumulated expenditures on Crane's new building during the capitalization period. Weighted-Average Accumulated Expenditures $ e Textbook and Media Compute the avoidable interest on Crane's new building. (Round intermediate percentage calculation to 1 decimal place, e.g. 15.6% and final answer to O decimal places, e.g. 5,125.) Avoidable Interest $ e Textbook and Media Some interest cost of Crane Inc. is capitalized for the year ended May 31, 2021. Compute the amount of each items that must be...
Testbank Problem 139
During 2020, Debra Building Company constructed various assets
at a total cost of $12,600,000. The weighted average accumulated
expenditures on assets qualifying for capitalization of interest
during 2020 were $8,729,000. The company had the following debt
outstanding at December 31, 2020:
1.
10%, 5-year note to finance construction of various assets,
dated January 1, 2020, with interest payable annually on January
1
$5,313,000
2.
12%, ten-year bonds issued at par on December 31, 2014, with
interest payable...
Please show work for this problem.
4. (7 points) During 2014, Barden Building Company constructed various assets at a total cost of $12,600,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2014 were $8,400,000. The company had the following debt outstanding at December 31, 2014: 1. 10%, 5-year note to finance construction of various assets, dated January 1, 2014, with interest payable annually on January 1 $5,400,000 2. 12%, ten-year bonds issued at par on...
Question 6 --/10 View Policies Current Attempt in Progress During 2020, Vaughn Manufacturing incurred weighted average accumulated expenditures of $1590000 during construction of assets that qualified for capitalization of interest. The only debt outstanding during 2020 was a $2040000, 12%, 5-year note payable dated January 1, 2020. What is the amount of interest that should be capitalized by Vaughn during 2020? $190800. $244800. $0. $54000.
Teslüdrik Problemi 139 x Your answer is incorrect. Try again. During 2020, Maria Building Company constructed various assets at a total cost of $12,600,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2020 were $8,347,000. The company had the following debt outstanding at December 31, 2020: 1. 10%, 5-year note to finance construction of various assets, dated January 1, 2020, with interest payable annually on January 1 2. 12%, ten-year bonds issued at par on...