Assume that Vaughn completed the office and warehouse building on December 31, 2020, as planned at a total cost of $10,400,000, and the weighted-average amount of accumulated expenditures was $7,200,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to 0 decimal places, e.g. 5,275.) Avoidable Interest ?????? $ Compute the depreciation expense for the year ended December 31, 2021. Vaughn elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $600,000. (Round answer to 0 decimal places, e.g. 5,275.) Depreciation Expense???? $$$$$$
Assume that Vaughn completed the office and warehouse building on December 31, 2020, as planned at a total cost of $10,400,000, and the weighted-average amount of accumulated expenditures was $7,200,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to 0 decimal places, e.g. 5,275.) Avoidable Interest ?????? $ Compute the depreciation expense for the year ended December 31, 2021. Vaughn elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $600,000. (Round answer to 0 decimal places, e.g. 5,275.) Depreciation Expense???? $$$$$$
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vaughn Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $10,000,000 on January 1, 2020. Vaughn expected to complete the building by December 31, 2020. Vaughn has the following debt obligations outstanding during the construction period.
| Construction loan-10% interest, payable semiannually, issued December 31, 2019 | $4,000,000 | |
| Short-term loan-8% interest, payable monthly, and principal payable at maturity on May 30, 2021 | 2,800,000 | |
| Long-term loan-9% interest, payable on January 1 of each year. Principal payable on January 1, 2024 | 2,000,000 |
Assume that Vaughn completed the office and warehouse building on December 31, 2020, as planned at a total cost of $10,400,000, and the weighted-average amount of accumulated expenditures was $7,200,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to 0 decimal places, e.g. 5,275.)
| Avoidable Interest | ?????? |
$
|
Compute the depreciation expense for the year ended December 31, 2021. Vaughn elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $600,000. (Round answer to 0 decimal places, e.g. 5,275.)
Depreciation Expense???? $$$$$$
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