Business, 07.03.2020 04:26 melissapulido198
On January 1, 2016, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2017. The only interest-bearing debt the company had outstanding during 2016 was long-term bonds with a book value of $10,000,000 and an effective interest rate of 8%. Construction expenditures incurred during 2016 were as follows:
January 1
$500,000
March 1
600,000
July 31
480,000
September 30
600,000
December 31
300,000
Required:
Calculate the amount of interest capitalized for 2016.
Answers: 2
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On January 1, 2016, the Shagri Company began construction on a new manufacturing facility for its ow...
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