EEE Co. decided to construct a building to expand its operations. The entity decided to obtain a 5-year specific loan from EFF Bank for $10,000,000 at 12% on December 31, 2018, to finance the construction of the building. The construction started on January 2, 2019 and the building was completed on December 31 of the same year. Payments were made as follows: January 2-$1,500,000 April 1 $2,000,000 June 1- $2,100,000 October 1- $1,700,000 December 1 -$2,200,000. What is the intial cost of the building?
EEE Co. decided to construct a building to expand its operations. The entity decided to obtain a 5-year specific loan from EFF Bank for $10,000,000 at 12% on December 31, 2018, to finance the construction of the building. The construction started on January 2, 2019 and the building was completed on December 31 of the same year. Payments were made as follows: January 2-$1,500,000 April 1 $2,000,000 June 1- $2,100,000 October 1- $1,700,000 December 1 -$2,200,000. What is the intial cost of the building?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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EEE Co. decided to construct a building to expand its operations. The entity decided to obtain a 5-year specific loan from EFF Bank for $10,000,000 at 12% on December 31, 2018, to finance the construction of the building. The construction started on January 2, 2019 and the building was completed on December 31 of the same year. Payments were made as follows: January 2-$1,500,000
April 1 $2,000,000
June 1- $2,100,000
October 1- $1,700,000
December 1 -$2,200,000.
What is the intial cost of the building?
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