Business, 13.10.2020 04:01 connermichaela
A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $530,000; March 31, $630,000; June 30, $430,000; October 30, $690,000. To help finance construction, the company arranged a 10% construction loan on January 1 for $760,000. The company’s other borrowings, outstanding for the whole year, consisted of a $4 million loan and a $6 million note with interest rates of 13% and 6%, respectively.
Required:
Assuming the company uses the specific interest method, calculate the amount of interest capitalized for the year.
Answers: 2
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A company constructs a building for its own use. Construction began on January 1 and ended on Decemb...
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