Whispering Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $3,000,000 on January 1, 2020 Whispering expected to complete the building by December 31, 2020. Whispering has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 $1,200,000 840,000 600,000 Assume that Whispering completed the office and warehouse building on December 31, 2020, as planned at a total cost of $3.120.000, and the weighted average amount of accumulated expenditures was $2.160,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, eg. 7.58% for computational purposes and round final answers to 0 decimal places, eg. 5,275) Avoidable Interest S Compute the depreciation expense for the year ended December 31, 2021. Whispering elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $180.000. (Round answer to 0 decimal places, eg. 5,275) Depreciation Expense S
Whispering Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $3,000,000 on January 1, 2020 Whispering expected to complete the building by December 31, 2020. Whispering has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 $1,200,000 840,000 600,000 Assume that Whispering completed the office and warehouse building on December 31, 2020, as planned at a total cost of $3.120.000, and the weighted average amount of accumulated expenditures was $2.160,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, eg. 7.58% for computational purposes and round final answers to 0 decimal places, eg. 5,275) Avoidable Interest S Compute the depreciation expense for the year ended December 31, 2021. Whispering elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $180.000. (Round answer to 0 decimal places, eg. 5,275) Depreciation Expense S
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Construction loan-12% interest, payable semiannually, issued December 31, 2019
Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021
Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024
Ⓒ
Whispering Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $3,000,000 on January 1, 2020.
Whispering expected to complete the building by December 31, 2020. Whispering has the following debt obligations outstanding during the construction period.
$1,200,000
840,000
600,000
Show Time
Assume that Whispering completed the office and warehouse building on December 31, 2020, as planned at a total cost of $3.120,000, and the weighted average
amount of accumulated expenditures was $2.160,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for
computational purposes and round final answers to O decimal places, e.g. 5,275.)
Avoidable Interest S
Compute the depreciation expense for the year ended December 31, 2021. Whispering elected to depreciate the building on a straight-line basis and determined that the
asset has a useful life of 30 years and a salvage value of $180,000. (Round answer to 0 decimal places, eg. 5,275.)
Depreciation Expense S
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