i want to know the interest capitalized and
interest expense in 2019 and the cost of the building.
If it is helpful, please rate the answer and if any doubt arises let me know
2018 | 2019 | |||||
Interest Capitalized | $ 474,000 | $ 582,819 | ||||
Interest Expense | $ 1,016,000 | $ 907,181 | ||||
Cost of Building | $ 7,835,819 | |||||
Workings | ||||||
Expenditure for 2018 | ||||||
Jan 1,2018 | $ 13,50,000 | X | 12/12 | = | $ 13,50,000 | |
March 1, 2018 | $ 10,80,000 | X | 10/12 | = | $ 9,00,000 | |
June 30, 2018 | $ 12,80,000 | X | 6/12 | = | $ 6,40,000 | |
October 1, 2018 | $ 10,80,000 | X | 3/12 | = | $ 2,70,000 | |
$ 47,90,000 | $ 31,60,000 | |||||
Interest Capitalized in 2018 | ||||||
$ 31,60,000 | X | 15.00% | = | $ 4,74,000 | ||
Expenditure for 2019 | ||||||
Jan 1, 2019 ($4790000+$474,000) | $ 52,64,000 | X | 9/9 | = | $ 52,64,000 | |
Jan 31, 2019 | $ 3,42,000 | X | 8/9 | = | $ 3,04,000 | |
April 30, 2019 | $ 6,75,000 | X | 5/9 | = | $ 3,75,000 | |
August 31. 2019 | $ 9,72,000 | X | 1/9 | = | $ 1,08,000 | |
$ 72,53,000 | $ 60,51,000 | |||||
Interest Capitalized in 2019 | ||||||
$ 60,51,000 | ||||||
Less: | $ 38,00,000 | X | 15.00% | X 9/12 | = | $ 4,27,500 |
$ 22,51,000 | X | 9.20% | X 9/12 | = | $ 1,55,319 | |
Interest Capitalized in 2019 | = | $ 5,82,819 | ||||
Weighted Average rate of all debt:- | ||||||
$ 40,00,000 | X | 8% | = | $ 3,20,000 | ||
$ 60,00,000 | X | 10% | = | $ 6,00,000 | ||
$ 1,00,00,000 | $ 9,20,000 | |||||
Weighted Average rate of all debt = | 9.20% | |||||
($ 920,000/ $ 100,00,000) | ||||||
Interest Expense for 2018: | ||||||
Total Interest Incurred | ($38,00,000*15%)+($40,00,000*8%)+($60,00,000*10%) | = | $ 14,90,000 | |||
Less : Interest Capitalized | = | $ 4,74,000 | ||||
2018 Expense | = | $ 10,16,000 | ||||
Interest Expense for 2019: | ||||||
Total Interest Incurred | = | $ 14,90,000 | ||||
Less : Interest Capitalized | = | $ 5,82,819 | ||||
2019 Expense | = | $ 9,07,181 | ||||
Cost of Building | ||||||
Expenditure for 2018 | = | $ 47,90,000 | ||||
Interest Capitalized in 2018 | = | $ 4,74,000 | ||||
Expenditure for 2019 | = | $ 19,89,000 | ||||
Interest Capitalized in 2019 | = | $ 5,82,819 | ||||
Cost of Building | = | $ 78,35,819 |
i want to know the interest capitalized and interest expense in 2019 and the cost of...
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help please
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