4. On March 1, 2019 Newton Company purchased land for an office site by paying $2,700,000 cash. Newton began construction on the office building on March 1. The following expenditures were incurred for construction: Date Expenditures 1,800,000.00 2,520,000.00 4,500,000.00 4,800,000.00 1-Mar-19 $ 1-Apr-19 $ 1-May-19 $ 1-Jun-19 $ The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3,600,000 was borrowed on March 1, 2019 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2017 was a $1,500,000, 12%, 6-year note payable dated January 1, 2019. What is the interest cost capitalized?
4. On March 1, 2019 Newton Company purchased land for an office site by paying $2,700,000 cash. Newton began construction on the office building on March 1. The following expenditures were incurred for construction: Date Expenditures 1,800,000.00 2,520,000.00 4,500,000.00 4,800,000.00 1-Mar-19 $ 1-Apr-19 $ 1-May-19 $ 1-Jun-19 $ The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3,600,000 was borrowed on March 1, 2019 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2017 was a $1,500,000, 12%, 6-year note payable dated January 1, 2019. What is the interest cost capitalized?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:4. On March 1, 2019 Newton Company purchased land for an office site by paying $2,700,000 cash. Newton began construction
on the office building on March 1. The following expenditures were incurred for construction:
Date
Expenditures
1,800,000.00
2,520,000.00
4,500,000.00
1-Mar-19 $
1-Apr-19 $
1-May-19 $
1-Jun-19 $
4,800,000.00
The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3,600,000 was borrowed
on March 1, 2019 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2017 was a $1,500,000,
12%, 6-year note payable dated January 1, 2019. What is the interest cost capitalized?
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