2021 | 2022 | |||||
Interest Capitalized | $ 3,78,000 | $ 5,01,453 | ||||
Interest Expense | $ 13,42,000 | $ 12,18,547 | ||||
Cost of Building | = | $ 63,46,453 | ||||
Workings: | ||||||
Expenditure for 2021 | ||||||
Jan 1,2021 | $ 12,80,000 | X | 12/12 | = | $ 12,80,000 | |
March 1, 2021 | $ 7,20,000 | X | 10/12 | = | $ 6,00,000 | |
June 30, 2021 | $ 9,20,000 | X | 6/12 | = | $ 4,60,000 | |
October 1, 2021 | $ 7,20,000 | X | 3/12 | = | $ 1,80,000 | |
$ 36,40,000 | $ 25,20,000 | |||||
Interest Capitalized in 2021 | ||||||
$ 25,20,000 | X | 15.00% | = | $ 3,78,000 | ||
Expenditure for 2022 | ||||||
Jan 1, 2022 ($3640000+$378000) | $ 40,18,000 | X | 9/9 | = | $ 40,18,000 | |
Jan 31, 2022 | $ 2,88,000 | X | 8/9 | = | $ 2,56,000 | |
April 30, 2022 | $ 6,21,000 | X | 5/9 | = | $ 3,45,000 | |
August 31. 2022 | $ 9,18,000 | X | 1/9 | = | $ 1,02,000 | |
$ 58,45,000 | $ 47,21,000 | |||||
Interest Capitalized in 2020 | ||||||
$ 47,21,000 | ||||||
Less: | $ 32,00,000 | X | 15.00% | X 9/12 | = | $ 3,60,000 |
$ 15,21,000 | X | 12.40% | X 9/12 | = | $ 1,41,453 | |
Interest Capitalized in 2020 | = | $ 5,01,453 | ||||
Weighted Average rate of all debt:- | ||||||
$ 30,00,000 | X | 11% | = | $ 3,30,000 | ||
$ 70,00,000 | X | 13% | = | $ 9,10,000 | ||
$ 1,00,00,000 | $ 12,40,000 | |||||
Weighted Average rate of all debt = | 12.40% | |||||
($1240000/ 100,00,000) | ||||||
Interest Expense for 2021: | ||||||
Total Interest Incurred | ($3200000*15%)+($3000000*11%)+($7000000*13%) | = | $ 17,20,000 | |||
Less : Interest Capitalized | = | $ 3,78,000 | ||||
2021 Expense | = | $ 13,42,000 | ||||
Interest Expense for 2022: | ||||||
Total Interest Incurred | = | $ 17,20,000 | ||||
Less : Interest Capitalized | = | $ 5,01,453 | ||||
2022 Expense | = | $ 12,18,547 | ||||
Cost of Building | ||||||
Expenditure for 2021 | = | $ 36,40,000 | ||||
Interest Capitalized in 2021 | = | $ 3,78,000 | ||||
Expenditure for 2022 | = | $ 18,27,000 | ||||
Interest Capitalized in 2022 | = | $ 5,01,453 | ||||
Cost of Building | = | $ 63,46,453 |
On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used...
On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 March 1, 2021 June 30, 2021 October 1, 2021 January 31, 2022 April 30, 2022 August 31, 2022 $1,280,000 720,000 920,000 720,000 288,000 621,000 918,000 On January 1, 2021, the company obtained a $3,200,000 construction loan with a 15% interest rate. The...
On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 March 1, 2021 June 30, 2021 October 1, 2021 January 31, 2022 April 30, 2022 August 31, 2022 $1,740,000 1,380,000 1, 580,000 1, 380,000 387,000 720,000 1, 017, 000 On January 1, 2021, the company obtained a $4,300,000 construction loan with a...
On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $ 1,740,000 March 1, 2021 1,380,000 June 30, 2021 1,580,000 October 1, 2021 1,380,000 January 31, 2022 387,000 April 30, 2022 720,000 August 31, 2022 1,017,000 On January 1, 2021, the company obtained a $4,300,000 construction loan with a 12% interest rate....
On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $ 1,740,000 March 1, 2021 1,380,000 June 30, 2021 1,580,000 October 1, 2021 1,380,000 January 31, 2022 387,000 April 30, 2022 720,000 August 31, 2022 1,017,000 On January 1, 2021, the company obtained a $4,300,000 construction loan with a 12% interest rate....
On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 March 1, 2021 June 30, 2021 October 1, 2021 January 31, 2022 April 30, 2022 August 31, 2022 $1,280,000 960,000 1,160,000 960,000 324,000 657,000 954,000 On January 1, 2021, the company obtained a $3,600,000 construction loan with a 15% interest rate. The...
On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $ 1,350,000 March 1, 2021 1,080,000 June 30, 2021 1,280,000 October 1, 2021 1,080,000 January 31, 2022 342,000 April 30, 2022 $675,000 August 31, 2022 $972,000 On January 1, 2021, the company obtained a $3,800,000 construction loan with a 15% interest rate....
On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $ 1,740,000 March 1, 2021 1,380,000 June 30, 2021 1,580,000 October 1, 2021 1,380,000 January 31, 2022 387,000 April 30, 2022 720,000 August 31, 2022 1,017,000 On January 1, 2021, the company obtained a $4,300,000 construction loan with a 12% interest rate....
On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $ 1,310,000 March 1, 2021 1,020,000 June 30, 2021 1,220,000 October 1, 2021 1,020,000 January 31, 2022 333,000 April 30, 2022 666,000 August 31, 2022 963,000 On January 1, 2021, the company obtained a $3,700,000 construction loan with a 12% interest rate....
On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 March 1, 2021 June 30, 2021 October 1, 2021 January 31, 2022 April 30, 2022 August 31, 2022 $1,310,000 1,020,000 1,220,000 1,020,000 333,000 666,000 963,000 On January 1, 2021, the company obtained a $3,700,000 construction loan with a 12% interest rate. The...
On January 1, 2021, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 March 1, 2021 June 30, 2021 October 1, 2021 January 31, 2022 April 30, 2022 August 31, 2022 $1,310,000 1,020,000 1,220,000 1,020,000 333,000 666,000 963,000 On January 1, 2021, the company obtained a $3,700,000 construction loan with a 12% interest rate. The...