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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 1792,000
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 1 on
a 12%, three-year note payable. The only other debt outstanding during the year was a $1,942,000, 10% note issued two
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?
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