On December 31, 2024, Waterway Inc. borrowed $1.260,000 at 13% payable annually to finance the construction of a new building. In 2025, the company made the following expenditures related to this building: June 1, $504,000; July 1, $756,000; September 1. $1,512,000: December 1, $756,000. The building was completed in April 2026. Additional information is provided as follows: 1. 2. (a) Other debt outstanding 10-year, 11% bond, dated December 31, 2018, interest payable annually 15-year, 13% note, dated December 31, 2012, interest payable annually Interest revenue earned in 2025 Your answer is incorrect. $12,600,000 $3,150,000 The amount of interest $ $7,560 Determine the amount of interest to be capitalized in 2025 in relation to the construction of the building. (Round answer to O decimal places, e.g. 5,125.)
On December 31, 2024, Waterway Inc. borrowed $1.260,000 at 13% payable annually to finance the construction of a new building. In 2025, the company made the following expenditures related to this building: June 1, $504,000; July 1, $756,000; September 1. $1,512,000: December 1, $756,000. The building was completed in April 2026. Additional information is provided as follows: 1. 2. (a) Other debt outstanding 10-year, 11% bond, dated December 31, 2018, interest payable annually 15-year, 13% note, dated December 31, 2012, interest payable annually Interest revenue earned in 2025 Your answer is incorrect. $12,600,000 $3,150,000 The amount of interest $ $7,560 Determine the amount of interest to be capitalized in 2025 in relation to the construction of the building. (Round answer to O decimal places, e.g. 5,125.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On December 31, 2024, Waterway Inc. borrowed $1,260,000 at 13% payable annually to finance the construction of a new building.
In 2025, the company made the following expenditures related to this building: June 1, $504,000; July 1, $756,000; September 1,
$1.512,000; December 1, $756,000. The building was completed in April 2026. Additional information is provided as follows:
1.
2.
(a)
Other debt outstanding
10-year, 11% bond, dated December 31, 2018, interest payable annually
15-year, 13% note, dated December 31, 2012, interest payable annually
Interest revenue earned in 2025
Your answer is incorrect.
$12,600,000
The amount of interest $
$3,150,000
$7,560
Determine the amount of interest to be capitalized in 2025 in relation to the construction of the building. (Round answer to O
decimal places, e.g. 5,125.)
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