Cullumber Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$1,511,250 on March 1, HK$1,017,000 on June 1, and HK$2,414,250 on December 31. Cullumber Ltd. had outstanding all year a 10%, 5-year, HK$4,720,000 note payable and an 11%, 4-year, HK$4,130,000 note payable. Determine the amount of borrowing cost that Cullumber Ltd. would capitalize. Use the capitalization rate used for borrowing cost capitalization purposes. (Round "Capitalization rate" to 2 decimal places, e.g. 2.51 and final answer to O decimal places, e.g. 5,275.) Borrowing cost capitalization HK$
Cullumber Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$1,511,250 on March 1, HK$1,017,000 on June 1, and HK$2,414,250 on December 31. Cullumber Ltd. had outstanding all year a 10%, 5-year, HK$4,720,000 note payable and an 11%, 4-year, HK$4,130,000 note payable. Determine the amount of borrowing cost that Cullumber Ltd. would capitalize. Use the capitalization rate used for borrowing cost capitalization purposes. (Round "Capitalization rate" to 2 decimal places, e.g. 2.51 and final answer to O decimal places, e.g. 5,275.) Borrowing cost capitalization HK$
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cullumber Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were
HK$1,511,250 on March 1, HK$1,017,000 on June 1, and HK$2,414,250 on December 31.
Cullumber Ltd. had outstanding all year a 10%, 5-year, HK$4,720,000 note payable and an 11%, 4-year, HK$4,130,000 note payable.
Determine the amount of borrowing cost that Cullumber Ltd. would capitalize. Use the capitalization rate used for borrowing cost
capitalization purposes. (Round "Capitalization rate" to 2 decimal places, e.g. 2.51 and final answer to O decimal places, e.g. 5,275.)
Borrowing cost capitalization
HK$
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