Capitalization of interest:
Capitalization of interest:
During 2014, Barden Building Company constructed various assets at a total cost of $12,600,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2014 were $8,400,000. The company had the following debt outstanding at December 31, 2014:
1.
10%, 5-year note to finance construction of various assets,
dated January 1, 2014, with interest payable annually on January 1
$5,400,000
2.
12%, ten-year bonds issued at par on December 31, 2008, with interest
payable annually on December 31
6,000,000
3.
9%, 3-year note payable, dated January 1, 2013, with interest payable
annually on January 1
3,000,000
Instructions
Compute the amounts of each of the following (show computations).
1.
Avoidable interest.
2.
Total interest to be capitalized during 2014.
Answers
Status NEW
Posted 11 Jul 2017 05:07 AM
My Price 8.00
-----------
Attachments
file 1499749901-Solutions file.docx preview (51 words )
S-----------olu-----------tio-----------ns -----------fil-----------e
-----------Hel-----------lo -----------Sir-----------/Ma-----------dam-----------
T-----------han-----------k y-----------ou -----------for----------- yo-----------ur -----------int-----------ere-----------st -----------and----------- bu-----------yin-----------g m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l b-----------e q-----------uic-----------kly----------- on-----------lin-----------e a-----------nd -----------giv-----------e y-----------ou -----------exa-----------ct -----------fil-----------e a-----------nd -----------the----------- sa-----------me -----------fil-----------e i-----------s a-----------lso----------- se-----------nt -----------to -----------you-----------r e-----------mai-----------l t-----------hat----------- is----------- re-----------gis-----------ter-----------ed -----------onÂ----------- th-----------is -----------web-----------sit-----------e
-----------Tha-----------nk -----------you-----------
-----------
Not Rated(0)