During 2019, Bing Company constructed its own equipment costing P5,000,000. The weighted average accumulated expenditure on these assets during 2019 was P2,500,000. To help finance the construction, P1, 800,000 was borrowed at 10% on January 1, 2019, and funds not needed for construction were temporarily invested in short-term securities, yielding P45,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a P2,500,000, 10-year, 9% notes payable dated January 1, 2019. What is the amount of interest that should be capitalized by Bing during 2019? *

During 2019, Bing Company constructed its own equipment costing P5,000,000. The weighted average accumulated expenditure on these assets during 2019 was P2,500,000. To help finance the construction, P1, 800,000 was borrowed at 10% on January 1, 2019, and funds not needed for construction were temporarily invested in short-term securities, yielding P45,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a P2,500,000, 10-year, 9% notes payable dated January 1, 2019. What is the amount of interest that should be capitalized by Bing during 2019? *

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

the future effects on income taxes, as measured
15. The net necessary net adjustment involves an adjustment to additional paid in capital in the amount of:
Question: The interest income to be recognized in 2022 is? Please include solutions. Thank you!
How much is the amortization expense for the 2020 income statement assuming the defense was unsuccessful?
what is the interest rate before tax based on the above calculations?
How much should be included as unrealized loss on the income statement for the year 2019?
What amount of gain on reversal of impairment loss should be recognized in 2020?
1. What is the income tax payable for 2020? (Apply the pre-CREATE law rulings)
could you please show me the steps for how to calculate Lucy's total gain and her current deductible loss.
A taxpayer may defer a taxable 2020 capital gain by investing the gain amount into which of the following? A Qualified Opportunity Fund. A new stock purchase. A Virtual Currency account. An Overseas Account.
The maximum amount of self employment income subject to social security (OASDI) tax in 2018 is?
kau.6 Calculate the amount of warranty expense that should have been recognized in 2023