On January 1, 2017 Dubai Company began construction of a new GYM. The GYM was finished and ready for use on 12/31/2017. Expenditure were January 1, 2017 $400000 April 1 $450000 June,1 $120000 Septe...
On January 1, 2017 Dubai Company began construction of a new GYM. The GYM was finished and ready for use on 12/31/2017. Expenditure were
January 1, 2017 $400000
April 1 $450000
June,1 $120000
September 1, $300000
December 31, $450000
Sharjah Company had $4500000 12% in construction note
A. What are the weighted-average accumulated depreciation
B. What is the avoidable interest for Sharjah Company
C. What is the actual Interest for Sharjah Company
D. What amount of interest should be charged to Expense
E. What is the total cost of the project for Sharjah Company
Homework Answers
since the last expenditure was
incurred on dec 31, for calculating weighted average only one day
out of a year is considered. As per standards, borrowing costs can
be capitalized only when it is used for construction of qualifying
asset. Since construction of gym takes substantial period it is
considered as qualifying asset.
Add Answer to:
On January 1, 2017 Dubai Company began construction of a new GYM. The GYM was finished and ready for use on 12/31/2017. Expenditure were January 1, 2017 $400000 April 1 $450000 June,1 $120000 Septe...
On January 1, 2017, UAE Inc. began construction of an automated car system. The system was...
On January 1, 2017, UAE Inc. began construction of an automated car system. The system was finished and ready for use on 12-31 2017. Expenditures on the project were as follows January 1, 2017 April 1, 2017 July 1, 2017 December 31, 2017 $100,000 200,000 200,000 500,000 On January 1, 2017, UAE borrowed $225,000 on a construction loan at 12 % interest. These loans were outstanding throughout the construction period. The company had $750,000 in 9% bonds outstanding in 2017....
On January 2, 2017, Sunland Company began construction of a new citrus processing plant. The automated...
On January 2, 2017, Sunland Company began construction of a new
citrus processing plant. The automated plant was finished and ready
for use on September 30, 2018. Expenditures for the construction
were as follows:
January 2, 2017
$ 597000
September 1, 2017
1812000
December 31, 2017
1812000
March 31, 2018
1812000
September 30, 2018
1215000
Sunland Company borrowed $3370000 on a construction loan at 10%
interest on January 2, 2017. This loan was outstanding during the
construction period. The company...
On January 2, 2017, Marigold Corp. began construction of a new citrus processing plant. The automated...
On January 2, 2017, Marigold Corp. began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2018. Expenditures for the construction were as follows: January 2, 2017 September 1, 2017 December 31, 2017 March 31, 2018 September 30, 2018 592000 1812000 1812000 1812000 1201000 Ma gold Corp. borrowed $3280000 on a construction loan at 12% interest on an a y 2 2017. This loan was outstanding during bonds outstanding in...
On January 1, 2016, Dreamworld Co. began construction of a new warehouse. The building was finished...
On January 1, 2016, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2017. Expenditures on the project were as follows: January 1, 2016 $320,000 September 1, 2016 $480,000 December 31, 2016 $480,000 March 31, 2017 $480,000 September 30, 2017 $320,000 Dreamworld had $6,000,000 in 14% bonds outstanding through both years. Dreamworld's capitalized interest in 2016 was: Multiple Choice $44,800. $67,200. $78,400. $89,600.
On January 1, 2016, Dreamworld Co. began construction of a new warehouse. The building was finished...
On January 1, 2016, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2017. Expenditures on the project were as follows: January 1, 2016 $300,000 September 1, 2016 $450,000 December 31, 2016 $450,000 March 31, 2017 $450,000 September 30, 2017 $300,000 Dreamworld had $5,000,000 in 12% bonds outstanding through both years. Dreamworld's average accumulated expenditures for 2016 was: a. $300,000 b. $450,000 c. $525,000 d. $600,000
On January 1, 2018, the Highlands Company began construction on a new manufacturing facility for its own use. The build...
On January 1, 2018, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2019. The company borrowed $1,800,000 at 7% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2018: $9,000,000, 12% bonds $6,000,000, 7% long-term note Construction expenditures incurred during 2018 were as follows: January 1 March 31 June 30 September 30 December 31 $ 780,000 1,380,000...
Arlington Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6,400,000 on March 1, $5,280,000 on June 1, and $8,000,000 on Decembe...
Arlington Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6,400,000 on March 1, $5,280,000 on June 1, and $8,000,000 on December 31. Arlington Company borrowed $3,200,000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6,400,000 note payable and an 11%, 4-year, $12,000,000 note payable. What is the avoidable interest for Arlington Company?
On January 2, 2020, Bonita Industries began construction of a new citrus processing plant. The automated...
On January 2, 2020, Bonita Industries began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows: January 2, 2020 September 1, 2020 December 31, 2020 March 31, 2021 September 30, 2021 $ 609000 1812000 1812000 812000 198000 1 1 Bonita Industries borrowed $3290000 on a construction loan at 12% interest on January 2, 2020. This loan was outstanding during the construction period....
On January 1, 2018, the Shagri Company began construction on a new manufacturing facility for its...
On January 1, 2018, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2019. The only interest-bearing debt the company had outstanding during 2018 was long-term bonds with a book value of $10,100,000 and an effective interest rate of 9%. Construction expenditures incurred during 2018 were as follows: January 1 March 1 July 31 September 30 December 31 $ 510,000 606, 000 486,000 610,000 310,000 Required: Calculate the amount of...
On January 1, 2018, the Highlands Company began construction on a new manufacturing facility for its...
On January 1, 2018, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2019. The company borrowed $1,500,000 at 10% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2018: $8,000,000, 15% bonds $2,000,000, 10% long-term note Construction expenditures incurred during 2018 were as follows: January 1 $ 660,000 March 31 1,260,000 June 30 872,000 September 30 660,000...
On January 1, 2017, UAE Inc. began construction of an automated car system. The system was finished and ready for use on 12-31 2017. Expenditures on the project were as follows January 1, 2017 April 1, 2017 July 1, 2017 December 31, 2017 $100,000 200,000 200,000 500,000 On January 1, 2017, UAE borrowed $225,000 on a construction loan at 12 % interest. These loans were outstanding throughout the construction period. The company had $750,000 in 9% bonds outstanding in 2017....
On January 2, 2017, Sunland Company began construction of a new
citrus processing plant. The automated plant was finished and ready
for use on September 30, 2018. Expenditures for the construction
were as follows:
January 2, 2017
$ 597000
September 1, 2017
1812000
December 31, 2017
1812000
March 31, 2018
1812000
September 30, 2018
1215000
Sunland Company borrowed $3370000 on a construction loan at 10%
interest on January 2, 2017. This loan was outstanding during the
construction period. The company...
On January 2, 2017, Marigold Corp. began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2018. Expenditures for the construction were as follows: January 2, 2017 September 1, 2017 December 31, 2017 March 31, 2018 September 30, 2018 592000 1812000 1812000 1812000 1201000 Ma gold Corp. borrowed $3280000 on a construction loan at 12% interest on an a y 2 2017. This loan was outstanding during bonds outstanding in...
On January 1, 2018, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2019. The company borrowed $1,800,000 at 7% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2018: $9,000,000, 12% bonds $6,000,000, 7% long-term note Construction expenditures incurred during 2018 were as follows: January 1 March 31 June 30 September 30 December 31 $ 780,000 1,380,000...
On January 2, 2020, Bonita Industries began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows: January 2, 2020 September 1, 2020 December 31, 2020 March 31, 2021 September 30, 2021 $ 609000 1812000 1812000 812000 198000 1 1 Bonita Industries borrowed $3290000 on a construction loan at 12% interest on January 2, 2020. This loan was outstanding during the construction period....
On January 1, 2018, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2019. The only interest-bearing debt the company had outstanding during 2018 was long-term bonds with a book value of $10,100,000 and an effective interest rate of 9%. Construction expenditures incurred during 2018 were as follows: January 1 March 1 July 31 September 30 December 31 $ 510,000 606, 000 486,000 610,000 310,000 Required: Calculate the amount of...
Most questions answered within 3 hours.
-
For Dijkstra’s shortest path algorithm:
a. Give the Big-O time for Dijkstra’s shortest path algorithm
and...
asked 3 minutes ago -
Phosphorus violates the 'octet rule' in biological molecules,
forming more covalent bonds than expected based on...
asked 6 minutes ago -
A 1.3 eV electron has a 10-4 probability of tunneling
through a 2.4 eV potential barrier....
asked 25 minutes ago -
What is the one ingredient that is common to being successful
with all stakeholders?
profit
trust...
asked 24 minutes ago -
Write an assembly language 32 bit program that reads in lines of
text by a .txt...
asked 26 minutes ago -
what is the density ( in g/L) of hydrogen gas at 29 degrees C and a...
asked 35 minutes ago -
5-6. You are considering three investment alternatives for some
spare cash: Old Reliable Corporation stock (A1),...
asked 27 minutes ago -
Problem 16-02
Receivables Investment
Medwig Corporation has a DSO of 45 days. The company averages
$7,250...
asked 42 minutes ago -
Mr. Brown hired Lowe's Maintenance Services Limited to repair
and paint the exterior wall of his...
asked 43 minutes ago -
When might an index slow down the overall performance of the
database? Choose the best answer....
asked 48 minutes ago -
Due to a recession, expected inflation this year is only 2.25%.
However, the inflation rate in...
asked 49 minutes ago -
Write four functions: (IN PYTHON 3)
1) bound(l) - given a list of integers l, compute...
asked 51 minutes ago