Homework Answers
If it is helpful, please rate the answer and if any doubt arises let me know
| Total Interest capitalized in year 1 | = | $ 2,24,800 | |||
| Workings: | |||||
| Average accumulated Expenditure | ($5000000 / 2) | = | $ 25,00,000 | ||
| Average | Interest rate | Capitalized Interest | |||
| Average accumulated Expenditure | $ 25,00,000 | ||||
| Construction loan | $ 16,60,000 | X | 10.00% | = | $ 1,66,000 |
| Other loan | $ 8,40,000 | X | 7.00% | = | $ 58,800 |
| Total Interest capitalized in year 1 | = | $ 2,24,800 | |||
| Weighted Average rate of all debt:- | |||||
| $ 25,00,000 | X | 9% | = | $ 2,25,000 | |
| $ 50,00,000 | X | 6% | = | $ 3,00,000 | |
| $ 75,00,000 | $ 5,25,000 | ||||
| Weighted Average rate of all debt = | 7.00% | ||||
| ($525000 / $7500000) | |||||
Add Answer to:
On January 1, year 1, the Maxlee Company began construction of an office building to be...
On January 1, 2018, the Marjlee Company began construction of an office building to be used...
On January 1, 2018, the Marjlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2019. Construction expenditures for 2018, which were incurred evenly throughout the year, totaled $7,200,000. Marjlee had the following debt obligations which were outstanding during all of 2018: Construction loan, 115 Long-term note, 105 Long-term note, 71 $1,800,000 2,100,000 4,800,000 Required: Calculate the amount of interest capitalized in 2018 for the building using the specific...
On January 1, 2018, the Marjlee Company began construction of an office building to be used...
On January 1, 2018, the Marjlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2019. Construction expenditures for 2018, which were incurred evenly throughout the year, totaled $5,400,000. Marjlee had the following debt obligations which were outstanding during all of 2018: Construction loan, 12% $ 1,350,000 Long-term note, 11% 1,800,000 Long-term note, 8% 3,600,000 Required: Calculate the amount of interest capitalized in 2018 for the building using the...
On January 1, 2021, the Marjlee Company began construction of an office building to be used...
On January 1, 2021, the Marjlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2022. Construction expenditures for 2021, which were incurred evenly throughout the year, totaled $9,600,000. Marjlee had the following debt obligations which were outstanding during all of 2021: Construction loan, 98 Long-term note, 88 Long-term note, 58 $2,400,000 3,200,000 6,400,000 Required: Calculate the amount of interest capitalized in 2021 for the building using the specific...
On January 1, 2018, the Marjlee Company began construction of an office building to be used...
On January 1, 2018, the Marjlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2019. Construction expenditures for 2018, which were incurred evenly throughout the year, totaled $9,000,000. Marjlee had the following debt obligations which were outstanding during all of 2018: Construction loan, 11% $ 2,250,000 Long-term note, 10% 3,000,000 Long-term note, 7% 6,000,000 Required: Calculate the amount of interest capitalized in 2018 for the building using the...
On January 1, 2021, the Marjlee Company began construction of an office building to be used...
On January 1, 2021, the Marjlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2022. Construction expenditures for 2021, which were incurred evenly throughout the year, totaled $8,700,000. Marjlee had the following debt obligations which were outstanding during all of 2021: Construction loan, 9% $ 2,175,000 Long-term note, 8% 2,900,000 Long-term note, 5% 5,800,000 Required: Calculate the amount of interest capitalized in 2021 for the building using the...
On January 1, 2021, the Marjlee Company began construction of anoffice building to be used...
On January 1, 2021, the Marjlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2022. Construction expenditures for 2021, which were incurred evenly throughout the year, totaled $7,200,000. Marjlee had the following debt obligations which were outstanding during all of 2021:Construction loan, 10%$1,800,000Long-term note, 9%2,400,000Long-term note, 6%4,800,000Required:Calculate the amount of interest capitalized in 2021 for the building using the specific interest method.
On January 1, 2021, the Marlee Company began construction of an office building to be used...
On January 1, 2021, the Marlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2022. Construction expenditures for 2021, which were incurred evenly throughout the year, totaled 55.100.000 Mawjee had the following debt obligations which were outstanding during all of 2020 Construction loan, 135 Longteremte, 125 Long-tere note, 1,275,000 1.700,000 Required: Calculate the amount of interest capitalized in 2021 for the building using the specific terest method
Exercise 10-22 Interest capitalization (LO10-7] On January 1, 2018, the Marjlee Company began construction of an...
Exercise 10-22 Interest capitalization (LO10-7] On January 1, 2018, the Marjlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2019. Construction expenditures for 2018, which were incurred evenly throughout the year, totaled $7,200,000. Marjlee had the following debt obligations which were outstanding during all of 2018 Construction loan, 116 Long-term note, 101 Long-term note, 73 $1.300.000 2.400,000 4.500.000 Required: Calculate the amount of interest capitalized in 2018 for...
Exercise 10-22 Interest capitalization [LO10-7] On January 1, 2018, the Marjlee Company began construction of an...
Exercise 10-22 Interest capitalization [LO10-7] On January 1, 2018, the Marjlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2019. Construction expenditures for 2018, which were incurred evenly throughout the year, totaled $5,400,000. Marjlee had the following debt obligations which were outstanding during all of 2018: Construction loan, 12% $ 1,350,000 Long-term note, 11% 1,800,000 Long-term note, 8% 3,600,000 Required: Calculate the amount of interest capitalized in 2018...
On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its...
On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The company borrowed $1,850,000 at 10% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021: $4,000,000, 14% bonds $1,000,000, 10% long-term note Construction expenditures incurred during 2021 were as follows: January 1 $ 800,000 March 31 1,400,000 June 30 1,040,000 September 30 800,000...
On January 1, 2018, the Marjlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2019. Construction expenditures for 2018, which were incurred evenly throughout the year, totaled $7,200,000. Marjlee had the following debt obligations which were outstanding during all of 2018: Construction loan, 115 Long-term note, 105 Long-term note, 71 $1,800,000 2,100,000 4,800,000 Required: Calculate the amount of interest capitalized in 2018 for the building using the specific...
On January 1, 2021, the Marjlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2022. Construction expenditures for 2021, which were incurred evenly throughout the year, totaled $9,600,000. Marjlee had the following debt obligations which were outstanding during all of 2021: Construction loan, 98 Long-term note, 88 Long-term note, 58 $2,400,000 3,200,000 6,400,000 Required: Calculate the amount of interest capitalized in 2021 for the building using the specific...
On January 1, 2021, the Marlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2022. Construction expenditures for 2021, which were incurred evenly throughout the year, totaled 55.100.000 Mawjee had the following debt obligations which were outstanding during all of 2020 Construction loan, 135 Longteremte, 125 Long-tere note, 1,275,000 1.700,000 Required: Calculate the amount of interest capitalized in 2021 for the building using the specific terest method
Exercise 10-22 Interest capitalization (LO10-7] On January 1, 2018, the Marjlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2019. Construction expenditures for 2018, which were incurred evenly throughout the year, totaled $7,200,000. Marjlee had the following debt obligations which were outstanding during all of 2018 Construction loan, 116 Long-term note, 101 Long-term note, 73 $1.300.000 2.400,000 4.500.000 Required: Calculate the amount of interest capitalized in 2018 for...
Most questions answered within 3 hours.
-
The following base sequence is found for a mRNA fragment from
wild-type E. coli: 5'- UAUCAGUAGAUAAUGUAACC-3'...
asked 16 minutes ago -
For this exercise, round all regression parameters to three
decimal places.
One of the two tables...
asked 35 minutes ago -
What is the 5% level of significance for mean = 3.60, standard
deviation = 0.94, and...
asked 38 minutes ago -
Prior to beginning work on this discussion, please read the
article by Hayley Peterson, 15 Companies...
asked 1 hour ago -
Which pair of aqueous solutions, when mixed, will form a
precipitate?
A) NaNO3 and AgC2H3O2
B)...
asked 1 hour ago -
1-Write an algorithm to get two numbers from the user (as
inputs) and calculate the sum...
asked 4 hours ago -
Define white-collar crime. What is the difference between
offender and offense-based definitions of white-collar crime? What...
asked 5 hours ago -
Consider a reaction which is 1st order with respect to A and 1st
order with respect...
asked 5 hours ago -
c++
The length of the hypotenuse of a right-angled triangle is the
square root of the...
asked 5 hours ago -
When a metal rod is heated, not only its resistance but also its
length and crossâsectional...
asked 5 hours ago -
write a c++ program that computes the L^1 - Norm of a given
vector (L^1 norm...
asked 5 hours ago -
A manufacturer of banana chips would like to know whether its
bag filling machine works correctly...
asked 6 hours ago