Thornton Industries began construction of a warehouse on July 1, 2021. The project was completed on March 31, 2022. No new loanswere required to fund construction. Thonton does have the following two interest-bearing liabilities that were outstanding throughoutthe construction perlod:$3,000, 000, 12% note$7,000, 000, 7X bondsConstruction expenditures Incurred were as follows:July 1, 2021Septenber 30, 2021November 30, 2021January 30, 2022$ 700,000990,000990, 000930,000The company's fiscal year-end is December 31.Required:Calculate the amount of interest capitallized for 2021 and 2022.Complete this question by entering your answers in the tabs below.20212022

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Thornton Industries began construction of a warehouse on July 1, 2021. The project was completed on March 31, 2022. No new loans were required to fund construction. Thornton does have the following two interest bearing liabilities that were outstanding throughout the construction perlod: $3,000,000, 12x note $7,000,000, 7% bonds Construction expenditures incurred were as follows: July 1, 2021 Septenber 30, 2021 November 30, 2021 January 30, 2022 $ 700,000 990,000 990,000 930,000 The company's fiscal year-end is December 31. Required: Calculate the amount of interest capitalized for 2021 and 2022. Complete this question by entering your answers in the tabs below. 2021 2022

Thornton Industries began construction of a warehouse on July 1, 2021. The project was completed on March 31, 2022. No new loans were required to fund construction. Thornton does have the following two interest bearing liabilities that were outstanding throughout the construction perlod: $3,000,000, 12x note $7,000,000, 7% bonds Construction expenditures incurred were as follows: July 1, 2021 Septenber 30, 2021 November 30, 2021 January 30, 2022 $ 700,000 990,000 990,000 930,000 The company's fiscal year-end is December 31. Required: Calculate the amount of interest capitalized for 2021 and 2022. Complete this question by entering your answers in the tabs below. 2021 2022

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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