Newton Company purchased land for an office site by paying $800,000 cash Newton began construction on the office building on January 1, 2014. The following expenditures were incurred for construction Date January 1, 2014 April 1, 2014 July 1, 2014 October 1, 2014 March 1, 2015 Expenditures $400,000 600,000 800,000 800,000 1,200,000 The office was completed and ready for occupancy on July 1, 2015. To help pay for construction, and purchase land, $1,200,000 was borrowed on January 1, 2014 on a 12%, 3-year note payable. Other than the constructio note, the only debt outstanding during 2014 was a $1,000,000, 9%, 6-year note payable dated March 1, 2012. The amount of interest cost to be capitalized during 2014 is

Newton Company purchased land for an office site by paying $800,000 cash Newton began construction on the office building on January 1, 2014. The following expenditures were incurred for construction Date January 1, 2014 April 1, 2014 July 1, 2014 October 1, 2014 March 1, 2015 Expenditures $400,000 600,000 800,000 800,000 1,200,000 The office was completed and ready for occupancy on July 1, 2015. To help pay for construction, and purchase land, $1,200,000 was borrowed on January 1, 2014 on a 12%, 3-year note payable. Other than the constructio note, the only debt outstanding during 2014 was a $1,000,000, 9%, 6-year note payable dated March 1, 2012. The amount of interest cost to be capitalized during 2014 is

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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