7. A building was constructed last year for Agro Co. for use as a production facility. Construction began on January 1 and was completed on December 31. The payments to the contractor were as follows. Date Payment 1/1 $600,000 3/31 700,000 9/30 1,000,000 11/1 800,000 To finance construction of the building, a $1,500,000, 12% construction loan was taken out on January 1. The loan was repaid on December 31. The firm had two sources of general debt: $800,000 note payable, 8% annual interest, and $1,200,000 par value bonds, 10% annual interest. Determine the amount of interest to be capitalized

Whispering Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$ 1,470,000 on March 1, HK$984,000 on June 1, and HK$ 2,406,000 on December 31. Whispering Ltd. had outstanding all year a 12%, 5-year, HK$ 3,840,000 note payable and on 13 %, 4-year, HK$3,360,000 note payable. Determine the amount of borrowing cost that Whispering Ltd. would capitalize. Use the capitalization rate used for borrowing cost capitalization purpose

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Current Attempt in Progress Crane Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,800,000 on March 1, $1,200,000 on June 1, and $3,026,000 on December 31. Crane Company borrowed $1.159,000 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,017,000 note payable and an 10 %, 4-year, $3,600,000 note payable. Compute avoidable interest for Crane Company. Use the weighted-average interest rate for interest capitalization purposes. (Round weighted- average interest rate to 4 decimal places, eg. 0.2152 and final answer to 0 decimal places, e.g. 5,275.) I Avoidable interest $ eTextbook and Media Save for Later Assistance Used Attempts: 0 of 3 used Submit Answer

At the beginning of 2009, Florida Road Construction entered into a contract to build a road for the government. Construction will take four years. Th e following information as of 31 December 2009 is available for the contract: Total revenue according to contract $10,000,000 Total expected cost $ 8,000,000 Cost incurred during 2009 $ 1,200,000 Assume that the company estimates percentage complete based on costs incurred as a percentage of total estimated costs. Under the completed contract method, how much revenue will be reported in 2009? B . $300,000.

Star Construction Corporation has a contract to construct a building for $10,950,000. The building is controlled by the customer throughout the term of the contract. Total costs to complete the building were originally estimated at $8,850,000. Construction commenced on 4 February 20×5. Actual costs were in line with estimated costs for 20×5 and 20×6. In 20×7, actual costs exceeded estimated costs by $150,000. Total construction costs incurred in each year were as follows: 20X5: $2,700,00020X6: $4,500,00020X7: $1,800,000 Progress billings based on the amount of work completed were collected each year. Star Construction uses the percentage-of-completion method. The percentage-of-completion is based on costs incurred compared with estimated total costs of the project. Company also billed the client and collected the following payments Year Billings Payments Received 20X5: $2,300,000 $2,100,000 20X6: $4,900,000 $4,700,000 20X7: $3,750,000 $4,150,000…

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A construction company entered into a fixed-price contract to build a soccer stadium for $15,000,000. Construction costs incurred during the first year were $3,675,000, and estimated costs to complete at the end of the year were $6,825,000. The company recognizes revenue over time according to percentage of completion.                     Fixed-price contract amount: $15,000,000        Construction costs incurred in first year: $3,675,000        Estimated costs to complete at end of first year: $6,825,000                  How much revenue and gross profit or loss will appear in the company’s income statement in the first year of the contract?           Percentage of completion at end of first year         Revenue         Gross profit (loss)                                                 Nothing in this area will be graded, but it will be submitted with your assignment.

Vikram