Crane Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6300000 on March 1, $5340000 on June 1, and $8850000 on December 31. Crane Company borrowed $3170000 on January 1 on a5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year $6350000 note payable and an 11 %, 4-year, $12050000 note payable. What is the actual interest for Crane Company?

Crane Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6300000 on March 1, $5340000 on June 1, and $8850000 on December 31. Crane Company borrowed $3170000 on January 1 on a5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year $6350000 note payable and an 11 %, 4-year, $12050000 note payable. What is the actual interest for Crane Company?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

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Question

Crane Company is constructing a building. Construction began on January 1 and was completed on December 31.
Expenditures were $6300000 on March 1, $5340000 on June 1, and $8850000 on December 31. Crane Company.
borrowed $3170000 on January 1 on a5-year, 12% note to help finance construction of the building. In addition, the
company had outstanding all year a 10%, 3-year $6350000 note payable and an 11%, 4-year, $12050000 note
payable. What is the actual interest for Crane Company?

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