Hh1.Account On March 1, Bramble Co. began construction of a small building. The following expenditures were incurred forconstruction:$297,600 March 1April 1 289,200May 1792,000June 1 999,600401,000 July 1The building was completed and occupied on July 1. To help pay for construction $181,000 was borrowed on March 1 ona 12%, three-year note payable. The only other debt outstanding during the year was a $1,942,000, 10% note issued twoyears ago.(a) Calculate the weighted-average accumulated expenditures.(b) Calculate avoidable interest.(c) At what amount will the building be recorded on Aardvark's books?

The interest can be capitalized the if it is related to the construction of a capital asset. The…

On March 1, Bramble Co. began construction of a small building. The following expenditures were incurred for construction: $297,600 March 1 April 1 289,200 May 1 792,000 June 1 999,600 401,000 July 1 The building was completed and occupied on July 1. To help pay for construction $181,000 was borrowed on March 10 a 12%, three-year note payable. The only other debt outstanding during the year was a $1,942,000, 10% note issued tw years ago. (a) Calculate the weighted-average accumulated expenditures. (b) Calculate avoidable interest. (c) At what amount will the building be recorded on Aardvark's books?

On March 1, Bramble Co. began construction of a small building. The following expenditures were incurred for construction: $297,600 March 1 April 1 289,200 May 1 792,000 June 1 999,600 401,000 July 1 The building was completed and occupied on July 1. To help pay for construction $181,000 was borrowed on March 10 a 12%, three-year note payable. The only other debt outstanding during the year was a $1,942,000, 10% note issued tw years ago. (a) Calculate the weighted-average accumulated expenditures. (b) Calculate avoidable interest. (c) At what amount will the building be recorded on Aardvark's books?

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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