Business, 13.11.2019 21:31 shelovejaylocs
Acompany constructs a building for its own use. construction began on january 1 and ended on december 31. the expenditures for construction were as follows: january 1, $1,500,000; and july 1, $3,000, 000. to finance construction, the company arranged a 7% construction loan on january 1 for $2,100,000. the company's other borrowings, outstanding for the whole year, consisted of a $15 million loan with an interest rate of 8%. assuming in capitalizing interest the company uses the interest rate for specific contruction borrowings up to the amount of the borrowing and the average rate on other borrowings for any excess construction spending, calculate the amount of interest capitalized for the year and prepare the journal entry.
Answers: 3
Another question on Business
Business, 22.06.2019 11:40
In early january, burger mania acquired 100% of the common stock of the crispy taco restaurant chain. the purchase price allocation included the following items: $4 million, patent; $3 million, trademark considered to have an indefinite useful life; and $5 million, goodwill. burger mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life. what is the total amount of amortization expense that would appear in burger mania's income statement for the first year ended december 31 related to these items?
Answers: 2
Business, 22.06.2019 20:10
Suppose the production function in an economy is y = k0.5l0.5, where k is the amount of capital and l is the amount of labor. the economy begins with 64 units of capital and 16 units of labor. use a calculator and equations in the chapter to find a numerical answer to each of the following questions. what are the wage and the rental price of capital? the wage is equal to unit(s) of output and the rental price of capital is equal to unit(s) of output.
Answers: 1
Business, 22.06.2019 20:40
Which of the following would indicate an improvement in a company's financial position, holding other things constant? a. the inventory and total assets turnover ratios both decline.b. the debt ratio increases.c. the profit margin declines.d. the times-interest-earned ratio declines.e. the current and quick ratios both increase.
Answers: 3
Business, 22.06.2019 21:10
Krier industries has just completed its sales forecasts and its marketing department estimates that the company will sell 43,800 units during the upcoming year. in the past, management has maintained inventories of finished goods at approximately 3 months' sales. however, the estimated inventory at the start of the year of the budget period is only 7,300 units. sales occur evenly throughout the year. what is the estimated production level (units) for the first month of the upcoming budget year?
Answers: 3
You know the right answer?
Acompany constructs a building for its own use. construction began on january 1 and ended on decembe...
Questions
