Thornton Industries began construction of a warehouse on July 1, 2024. The project was completed onMarch 31, 2025. No new loans were required to fund construction. Thornton does have the following twointerest - bearing liabilities that were outstanding throughout the construction period:$4,000,000, 9% note$6,000,000, 6% bondsConstruction expenditures incurred were as follows:July 1, 2024$ 430, 000September30, 2024630,000November 30, 2024630,000 January 30, 2025570,000 The companys fiscal year - end isDecember 31. Required:Calculate the amount of interest capitalized for 2024 and 2025.

An interest capitalized amount is the amount of interest which has been added to the construction…

Answered: . Required:Calculate the amount of…

Business

Accounting

. Required:Calculate the amount of interest capitalized for 2024 and 2025.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Thornton Industries began construction of a warehouse on July 1, 2024. The project was completed on
March 31, 2025. No new loans were required to fund construction. Thornton does have the following two
interest - bearing liabilities that were outstanding throughout the construction period:$4,000,000, 9% note$
6,000,000, 6% bondsConstruction expenditures incurred were as follows:July 1, 2024$ 430, 000September
30, 2024630,000November 30, 2024630,000 January 30, 2025570,000 The companys fiscal year - end is
December 31. Required:Calculate the amount of interest capitalized for 2024 and 2025.

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