Business
Business, 30.11.2019 01:31, samueldfhung

On january 1, 2021, the company obtained a $3 million construction loan with a 10% interest rate. the loan was outstanding all of 2021 and 2022. the company’s other interest-bearing debt included two long-term notes of $4,000,000 and $6,000,000 with interest rates of 6% and 8%, respectively. both notes were outstanding during all of 2021 and 2022. interest is paid annually on all debt. the company’s fiscal year-end is december 31.
calculate the amount of interest that mason should capitalize in 2021 and 2022 using the specific interest method.
what is the total cost of the building?
calculate the amount of interest expense that will appear in the 2021 and 2022 income statements.

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Business, 27.11.2019 23:31, ptrlvn01
On january 1, 2021, the company obtained a $3 million construction loan with a 12% interest rate. assume the $3 million loan is not specifically tied to construction of the building. the loan was outstanding all of 2021 and 2022. the company’s other interest-bearing debt included two long-term notes of $5,400,000 and $7,400,000 with interest rates of 6% and 8%, respectively. both notes were outstanding during all of 2021 and 2022. interest is paid annually on all debt. the company’s fiscal year-end is december 31. required: 1. calculate the amount of interest that mason should capitalize in 2021 and 2022 using the weighted-average method.2. what is the total cost of the building? 3. calculate the amount of interest expense that will appear in the 2021 and 2022 income statements.
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Business, 11.12.2019 20:31, leo4687
On january 1, 2021, the shagri company began construction on a new manufacturing facility for its own use. the building was completed in 2022. the only interest-bearing debt the company had outstanding during 2021 was long-term bonds with a book value of $10,000,000 and an effective interest rate of 8%. construction expenditures incurred during 2021 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 2021.
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Business, 13.12.2019 07:31, screen7866
On january 1, 2021, the shagri company began construction on a new manufacturing facility for its own use. the building was completed in 2022. the only interest-bearing debt the company had outstanding during 2021 was long-term bonds with a book value of $10,000,000 and an effective interest rate of 8%. construction expenditures incurred during 2021 were as follows: january 1$500,000march 1600,000july 31480,000september 30600,000december 31300,000required: calculate the amount of interest capitalized for 2021.
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