Alta Company is constructing a production complex that qualifies for interest capitalization. The following information is available: Capitalization period: January 1, 2019, to June 30, 2020 Expenditures on project: 2019: January 1 $ 456,000 May 1 489,000 October 1 588,000 2020: March 1 1,572,000 June 30 552,000 Amounts borrowed and outstanding: $1.7 million borrowed at 10%, specifically for the project $6 million borrowed on July 1, 2018, at 12% $10 million borrowed on January 1, 2017, at 6% Required: Note: Round all final numeric answers to two decimal places. Compute the amount of interest costs capitalized each year. Capitalized interest, 2019 $ fill in the blank 1 Capitalized interest, 2020 $ fill in the blank 2 If it is assumed that the production complex has an estimated life of 20 years and a residual value of $0, compute the straight-line depreciation in 2020. $ fill in the blank 3

Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $662,691. The fixed asset will be depreciated straight-line to 61,885 over its 3-year tax life, after which time it will have a market value of $112,268. The project requires an initial investment in net working capital of $78,031. The project is estimated to generate $223,911 in annual sales, with costs of $101,913. The tax rate is 0.29 and the required return on the project is 0.12. What is the total cash flow in year 0? (Make sure you enter the number with the appropriate +/- sign)

In 2024, Cupid Construction Company (CCC) began work on a two-year fixed price contract project. CCC recognizes revenue over time according to percentage of completion for this contract, and provides the following information (dollars in millions): Accounts receivable, 12/31/2024 (from construction progress billings) $ 37.5 Actual construction costs incurred in 2024 $ 135 Cash collected on project during 2024 $ 105 Construction in progress, 12/31/2024 $ 207 Estimated percentage of completion during 2024 60% What were the construction billings by CCC during 2024?

2.  On Dec 31, 2020 Laf borrowed $3,000,000 at 12% payable annually to finance construction of a new building. In 2021 the company made the following expenditures related to this building: March 1,  $360,000; June 1,  $600,000;    July 1,  $1,500,000; Dec 1,  $1,500,000. The building was completed on April 30, 2022 Other debt outstanding 10 year, $4,000,000, 13% bond, December 31, 2014, interest payable annually 6 year, 10%, $1,600,000 note dated December 31,2018, interest payable  March 1, 2021 an additional expenditure was made towards construction of $150,000 Interest revenue earned in 2021   $49,000   What is the weighted average interest rate of debt other than the specific borrowing loan?  (Round of interest rate to nearest whole number, so if you calculated .1412 you would write 14)  The firm does not need to use the WAIR rate in calculating capitalized interest in order for it to exist   Thank you  Brenda

am.103.

am. 85.

Interest During Construction Alta Company is constructing a production complex that qualifies for interest capitalization. The following information is available: Capitalization period: January 1,2019 to june 30,2020 Expenditures on project: Amounts borrowed and outstanding  $1.5 million borrowed at 12%  specifically for the project $6 million borrowed on July 1, 2015 at 14% $14 million borrowed on January 1,2014, at 8% Required : 1. Compute the amount of intrest costs capitalized each year  2. If it is assumed tha the production complex has an extimated life of 20years and a residual value of $0, Compute the straight - line depreciation in 2020 3. Next Level Explain the effects of the interest capitalization on the financial statements for both years ignore income taxes.

g. On October 1, 2023, Equipment B was acquired with a down payment of $4,000 and the remaining payments to be made in 10 annual installments of $4,000 each beginning October 1, 2024. The prevailing interest rate was 8%. Required: Supply the correct amount for each answer box on the schedule. Note: Round your intermediate calculations and final answers to the nearest whole dollar. THOMPSON CORPORATION Fixed Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2023, and September 30, 2024 Assets Acquisition Date Cost Residual Depreciation Method Estimated Life in Years Depreciation for Year Ended 9/30 2023 2024 Land A 10/1/2022 $ 65,000 N/A not applicable N/A N/A N/A Building A 10/1/2022 Land B 10/2/2022 Building B Under construction Donated Equipment 10/2/2022 Equipment A 10/2/2022 747,500 $47,500 85,400 210,000 to date 16,000 99,000 N/A Straight-line not applicable 50 $ 14,000 $14,000 N/A N/A N/A Straight-line 30 0 2,000 9,000 200% Declining balance 10 3,200 2,560…

On January 1, 2023, Marigold Inc. signed a fixed-price contract to have Builder Associates construct a major head office facility a a cost of $4 million. It was estimated that it would take three years to complete the project. Also, on January 1, 2023, to finance the construction cost, Marigold borrowed $4 million that is repayable in 10 annual instalments of $400,000, plus interest at the rate of 10%. During 2023, Marigold made deposit and progress payments totalling $1.5 million under the contract; the weighted average amount of accumulated expenditures was $791,000 for the year. The excess amount of borrowed funds was invested in short-term securities, from which Marigold realized investment income of $24,300. For situation 1, what amount should Marigold report as capitalized borrowing costs at December 31, 2023? (If an answer is zero, please enter O. Do not leave any fields blank.) Capitalized borrowing $ 375700

U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2020.        Plan assets $ 400,000 Projected benefit obligation   320,000    U.S.M.'s actuary determined that 2021 service cost is $60,000. Both the expected and actual rate of return on plan assets are 9%. The interest (discount) rate is 5%. U.S.M. contributed $120,000 to the pension fund at the end of 2021, and retirees were paid $44,000 from plan assets. (Enter your answers in thousands (i.e., 10,000 should be entered as 10).) Required: What is the pension expense at the end of 2021? What is the projected benefit obligation at the end of 2021? What is the plan assets balance at the end of 2021? What is the net pension asset or net pension liability at the end of 2021? Prepare journal entries to record the (a) pension expense, (b) funding of plan assets, and (c) retiree benefit payments.