Riverbed Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$2,232,000 on March 1. HK$1,488,000 on June 1, and HK$2,532,000 on December 31. Riverbed Ltd. had outstanding all year a 12%, 5-year, HK$4,960,000 note payable and an 13%, 4-year, HK$ 4,340,000 note payable. Compute the capitalization rate used for borrowing cost capitalization purposes. (Round answer to 2 decimal places, e.g. 7.58%.) Capitalization rate %
Riverbed Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$2,232,000 on March 1. HK$1,488,000 on June 1, and HK$2,532,000 on December 31. Riverbed Ltd. had outstanding all year a 12%, 5-year, HK$4,960,000 note payable and an 13%, 4-year, HK$ 4,340,000 note payable. Compute the capitalization rate used for borrowing cost capitalization purposes. (Round answer to 2 decimal places, e.g. 7.58%.) Capitalization rate %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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M112.
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Riverbed Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were
HK$2,232,000 on March 1, HK$1,488,000 on June 1, and HK$2,532,000 on December 31.
Riverbed Ltd. had outstanding all year a 12%, 5-year, HK$4,960,000 note payable and an 13%, 4-year, HK$4,340,000 note payable.
Compute the capitalization rate used for borrowing cost capitalization purposes. (Round answer to 2 decimal places, e.g. 7.58%.)
Capitalization rate
%
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