Question 12 Calculate avoidable interest. Question 13 How much interest will be capitalized as part of the cost of the building? 4 pts 4 pts On March 1, Gatt Co began construction of a small building. The following expenditures were incurred for construction: March 1: $75,000 April 1: $74,000 May 1: $180,000 June 1: $270,000 July 1: $100,000 The building was completed and occupied on July 1. To help pay for the construction, $50,000 was borrowed on March 1 on a 12%, three year note payable. The only other debt outstanding during the year was a $500,000, 10% note issued two years ago. 1. Calculate the weighted-average accumulated expenditures Use commas, but do not use $ signs or cents. Question 11 Calcualte the actual interest cost incurred during the year. 4 pts
Question 12 Calculate avoidable interest. Question 13 How much interest will be capitalized as part of the cost of the building? 4 pts 4 pts On March 1, Gatt Co began construction of a small building. The following expenditures were incurred for construction: March 1: $75,000 April 1: $74,000 May 1: $180,000 June 1: $270,000 July 1: $100,000 The building was completed and occupied on July 1. To help pay for the construction, $50,000 was borrowed on March 1 on a 12%, three year note payable. The only other debt outstanding during the year was a $500,000, 10% note issued two years ago. 1. Calculate the weighted-average accumulated expenditures Use commas, but do not use $ signs or cents. Question 11 Calcualte the actual interest cost incurred during the year. 4 pts
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Question 12
Calculate avoidable interest.
Question 13
How much interest will be capitalized as part of the cost of the building?
4 pts
4 pts
Transcribed Image Text:On March 1, Gatt Co began construction of a small building. The following expenditures were
incurred for construction:
March 1: $75,000
April 1: $74,000
May 1: $180,000
June 1: $270,000
July 1: $100,000
The building was completed and occupied on July 1. To help pay for the construction,
$50,000 was borrowed on March 1 on a 12%, three year note payable. The only other debt
outstanding during the year was a $500,000, 10% note issued two years ago.
1. Calculate the weighted-average accumulated expenditures
Use commas, but do not use $ signs or cents.
Question 11
Calcualte the actual interest cost incurred during the year.
4 pts
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