Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 08 Aug 2017 My Price 4.00

Brick Company

Brick Company started construction on a new office building on January 1, 2011, and moved into the finished building on July 1, 2012. Of the building’s $3,000,000 total cost, $2,000,000 was incurred in 2011 evenly throughout the year. The remaining $1,000,000 was paid in installments of $500,000 each on February 1, 2012 and June 30, 2012. Brick’s incremental borrowing rate was 12% throughout the construction period and the total amount of interest incurred by Brick during 2011 and 2012 was $200,000 and $210,000 respectively. What amount of capitalized interest should Brick report as part of its building account at December 31, 2011?

Answers

Maurice Tutor
(5)
Status NEW Posted 08 Aug 2017 11:08 PM My Price 4.00

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