View Policies Show Attempt History Current Attempt in Progress On December 31, 2024, Waterway Inc. borrowed $4,140,000 at 13% payable annually to finance the construction of a new building. In 2025, the company made the following expenditures related to this building: March 1, $496,800; June 1, $828,000; July 1, $2,070,000; December 1, $2,070,000. The building was completed in February 2026. Additional information is provided as follows. 1. Other debt outstanding: 10-year, 14% bond, December 31, 2018, interest payable annually 6-year, 11% note, dated December 31, 2022, interest payable annually $5,520,000 2,208,000 2. March 1, 2025, expenditure included land costs of $207,000. 3. Interest revenue of $67,620 earned in 2025. (a) Your answer is incorrect. Determine the amount of interest to be capitalized in 2025 in relation to the construction of the building. The amount of interest $

View Policies Show Attempt History Current Attempt in Progress On December 31, 2024, Waterway Inc. borrowed $4,140,000 at 13% payable annually to finance the construction of a new building. In 2025, the company made the following expenditures related to this building: March 1, $496,800; June 1, $828,000; July 1, $2,070,000; December 1, $2,070,000. The building was completed in February 2026. Additional information is provided as follows. 1. Other debt outstanding: 10-year, 14% bond, December 31, 2018, interest payable annually 6-year, 11% note, dated December 31, 2022, interest payable annually $5,520,000 2,208,000 2. March 1, 2025, expenditure included land costs of $207,000. 3. Interest revenue of $67,620 earned in 2025. (a) Your answer is incorrect. Determine the amount of interest to be capitalized in 2025 in relation to the construction of the building. The amount of interest $

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 9P

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On January 1, 2022, Affable Co. contracted with a contractor to construct a building for P20,000,000. The entity is required to make five payments in 2022 with the last payment scheduled on the date of completion. The building was completed on December 31, 2022. The entity made the following payments during 2022: January 1 P 2,000,000 March 31 4,000,000 June 30 6,100,000 September 30 4,400,000 December 31 3,500,000 20,000,000 The entity had the following debt outstanding on December 31, 2022: 12% 4-year note dated January 1, 8,500,000 2022, with interest compounded quarterly, both principal and interest due December 31, 2025, relating specifically to the building project. Round off future value factors to four (4) decimal places (e.g., 6.6667)
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red The following information is from Bowin Inc. for a long-term construction project that is expected to be completed in January 2021. The construction project is for a building intended for the company's own use. Bowin Inc. borrowed $800,000 at 12% on January 1 to help finance the construction. All debt was outstanding for the full year. Capital Expenditures for 2020 Jan. 1, 2020 $2,220,720 Mar. 1, 2020 300,000 June 30, 2020 500,000 Dec. 31, 2020 500,000 Outstanding Debt in 2020 Note payable Note payable Bond payable Note payable Construction loan $1,000,000 600,000 150,000 600,000 800,000 13% 8% 10% 12% 12% The amount of interest that actually incurred in 2020 is $
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View Policies Current Attempt in Progress The cost of equipment purchased by Swifty, Inc., on June 1, 2025, is $100,800. It is estimated that the machine will have a $8,400 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 46,200, and its total production is estimated at 660,000 units. During 2025, the machine was operated 6,240 hours and produced 57,200 units. During 2026, the machine was operated 5,720 hours and produced 49,900 units. Compute depreciation expense on the machine for the year ending December 31, 2025, and the year ending December 31, 2026, using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 45,892.) b. d. Straight-line Units-of-output Working hours Sum-of-the-years'-digits e. Double-declining-balance eTextbook and Media Save for Later $ $ $ $ $ Search 2025 $ $ $ -о-со CO 2026 Attempts: 0 of 3 used D Submit…
View Policies Current Attempt in Progress On October 1, 2022, Cullumber Manufacturing Company purchased a piece of high-tech equipment for $90,500 cash. Cullumber estimated the equipment would have a 8-year useful life and a residual value of $8,900. The company uses straight-line depreciation and has a September 30 fiscal year end. On October 1, 2024, Cullumber paid $15,100 cash to upgrade the equipment. It is expected that the upgrade will significantly reduce the operating costs of the equipment. Cullumber also reviewed the equipment's expected useful life and estimated that, due to changing technology, the equipment's total expected useful life will be 6 years and its residual value will be $4,600. Calculate the annual depreciation expense for the first two years of the equipment's life. Annual depreciation expense $ List of Accounts Calculate the carrying amount of the equipment at September 30, 2024. Carrying amount List of Accounts per year $
Problem 25-4 (IAA) Molave Company had the following outstanding loans during 2020 and 2021. Specific construction loan General loan 3,000,000 25,000,000 10% 12% The entity began the self-construction of a new building on January 1, 209 and the building was completed on June 30, 2021. The following expenditures were made: 1, 2020 1, 2020 December 1, 2020 1, 2021 4,000,000 5,000,000 3,000,000 6,000,000 January April March Required: 1. Compute the cost of the new building on December 31, 2020 and June 30, 2021. 2. Compute the interest.expense for 2020 and 2021.
View Policies Current Attempt in Progress Swifty Corporation borrowed $660000 from Liber Bank on January 1, 2019 in order to expand its mining capabilities. The five-year note required annual payments of $178200 and carried an annual interest rate of 8.50%. What is the amount of expense Swifty must recognize on its 2020 income statement? O $35580 $45722 O $40969 O $56100