Question 3 of 10 View Policies Show Attempt History Current Attempt in Progress 1. 2. On December 31, 2019, Grouper Inc. borrowed $3,420,000 at 12% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $410,400; June 1, $684,000; July 1, $1,710,000; December 1, $1,710,000. The building was completed in February 2021. Additional information is provided as follows. 3. (a) < Other debt outstanding 10-year, 13% bond, December 31, 2013, interest payable annually 6-year, 10% note, dated December 31, 2017, interest payable annually March 1, 2020, expenditure included land costs of $171,000 Interest revenue earned in 2020 * Your answer is incorrect. The amount of interest > eTextbook and Media List of Accounts Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building. Save for Later $ $4,560,000 $1,824,000 379099.40 $55,860 0/10 E Attempts: 1 of 3 used Submit Answer

Question 3 of 10 View Policies Show Attempt History Current Attempt in Progress 1. 2. On December 31, 2019, Grouper Inc. borrowed $3,420,000 at 12% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $410,400; June 1, $684,000; July 1, $1,710,000; December 1, $1,710,000. The building was completed in February 2021. Additional information is provided as follows. 3. (a) < Other debt outstanding 10-year, 13% bond, December 31, 2013, interest payable annually 6-year, 10% note, dated December 31, 2017, interest payable annually March 1, 2020, expenditure included land costs of $171,000 Interest revenue earned in 2020 * Your answer is incorrect. The amount of interest > eTextbook and Media List of Accounts Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building. Save for Later $ $4,560,000 $1,824,000 379099.40 $55,860 0/10 E Attempts: 1 of 3 used Submit Answer

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

See similar textbooks

Similar questions

View Policies Current Attempt in Progress On December 31, 2024, Blue Inc. borrowed $4,320,000 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, $518,400; June 1, $864,000; July 1, $2,160,000; December 1, $2,160,000. The building was completed in February 2026. Additional information is provided as follows. 1. 2. 3. (a) Other debt outstanding: 10-year, 14% bond, December 31, 2018, interest payable annually 6-year, 11% note, dated December 31, 2022, interest payable annually March 1, 2025, expenditure included land costs of $216,000. Interest revenue of $70,560 earned in 2025. The amount of interest Determine the amount of interest to be capitalized in 2025 in relation to the construction of the building. eTextbook and Media List of Accounts $ $5,760,000 EMBLY 2,304,000 DOLL
Question Content AreaOn January 1, 2019, Olvert Corp. signed a contract to have Bob's Builders construct a distribution center at a cost of $10,000,000. It was estimated that it would take two years to complete the project. Also on January 1, 2021, to finance the construction cost, Tolvin borrowed $10,000,000 payable in five annual installments of $4,000,000 plus interest at the rate of 6%. During 2021, Tolvin made the following construction-related expenditures: Date Amount 2/1 $2,200,000 5/1 $1,700,000 8/1 $ 700,000 11/1 $ 400,000 What amount should Tolvin report as capitalized interest at December 31, 2021? $300,000 $207,000 $150,000 $621,000
What is the cost of the new building on December 31, 2019? 5 Oakley Company had loans outstanding during 2018 and 2019: Specific construction loan General loan 2,000,000 25,000,000 10% 12% The company began the self-construction of a new building on January 1, 2018 and the building was completed December 31, 2019. Expenditures during 2018 and 2019 were: January 1, 2018 June 30, 2018 November 1, 2018 July 1, 2019 2,000,000 4,000,000 3,000,000 1,000,000
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 $
solve both a and b Acruni Co. had the following loans in place at the beginning of 2019. 1 January 2019 GHC m10% Bank loan repayable 2020 1209.5% Bank loan repayable 2021 808.9% debenture repayable 2024 100On 1 January 2019, Acruni Co began construction of a qualifying asset, a piece of machinery for a hydroelectric plant, using existing borrowings. Expenditure drawndown for the construction was GHc30 million on 1 January 2019, and GHc20million on 1 October 2019. Surplus funds were invested temporarily at a rate of 2%. Requireda) Calculate the borrowing costs that can be capitalized for the piece ofmachinery. b) Compute the cost of the machinery that will be reported in the statementof financial position as at December ,2019
Problem 25-6 (AICPA Adapted) Chum Company started construction of a new office building on January 1, 2020 and moved into the finished building. on July 1, 2021. Of the P25,000,000 total cost of the building, P20,000,000 was incurred in 2020. evenly throughout the year. The entity's incremental borrowing rate was 12% throughout 2020, and the total amount of interest incurred.was P1,020,000. S, What amount should be reported as capitalized interest on December 31, 2020? а. 1,020,000 b. 1,200,000 с. 1,500,000 d. 2,400,000 CS Scanned with CamScanner
11 NANGUTANG started constructing a building for its own use on January 1, 2020. NANGUTANG provided the following information related to the construction: Outstanding loans of the Company at January 1, 2020: Interest Rate Amount of loan Interest Cost 5% P10,000,000 P 500,000 10% 20,000,000 2,000,000 Total P30,000,000 P2,500,000 Construction expenditures: July 1, 2020 7,000,000 November 31,2020 3,000,000 December 31, 2020 1,000,000 The amount of borrowing cost that should be charged to profit or loss for the period is? Group of answer choices 340,142 312,375 2,208,450 2,187,625
Problem 16: The following disbursements were made in relation to the construction of CAN'T BE WITH YOU TONIGHT Co. building which started January 1, 2020 and the building was completed August 31, 2021. CAN'T BE WITH YOu TONIGHT Company have the following loans outstanding during 2020 and 2021: Interest Rate Amount Specific loan 15% 2,000,000 General loan 12% 15,000,000 The following expenditures were paid during 2020 and 2021 to KASI NANDITO ASAWA KO Construction. January 1, 2020 2,000,000 July 1, 2020 5,000,000 November 1, 2020 3,000,000 July 1, 2021 1,000,000 August 31, 2021 2,000,000 13,000,000 Answer the following questions In accordance with PAS 16 and PAS 23. 46. How much is the balance of the Building-in-progress at December 31, 2020? 47. How much interest incurred was capitalized in 2020? 48. How much interest incurred was recognized in the 2020 profit and loss statement? 49. How much interest incurred was recognized in the 2021 profit and loss statement assuming the all…
Interest Dunng Construction Snowbird Company is constructing a building that qualifies for interest capitalization. It is built between January 1 and December 31, 2019. Snowbird made the following expenditures related to this building: April 1 $396,000 July 1 400,000 September 1 510,000 December 1 120,000 The company borrowed $500,000 at 12% to help finance the project. In addition, Snowbird had outstanding borrowings of $2 million at 8% and $1 million at 9%. Required: 1. Compute the amount of interest capitalized related to the construction of the building. Do not round your interim calculations. Round your final answer to the nearest dollar. 24 134,794 X
quest 1 Benson Limited is constructing a Power Plant which was completed on 31st December 2019. The company obtained a bank loan of R1,000,000 at a rate of 15% per annum to construct the Power Plant on 1st January 2019. As of 31st December 2019, Benson Limited also had the following loans outstanding: I. 18% 5-year loan Note of R1,500,000 II. 14% Debentures of R1,000,000 Expenditures on the project were made as follows: I. On the 31st March 2019, R600,000 was incurred; II. R800,000 was incurred on 30th June 2019; III. The final expenditure incurred was R300,000 on 31st December 2019. During the year Benson Limited invested R400,000 of the bank loan for 2 months at an interest of 9% per annum. Required: Determine the amount of borrowing costs to be capitalized and expensed.
2020 2019 Receivable from Construction contract Costs incurred each year. Construction in progress Partial billings on contract Collection each year P252,000 P240,000 460,800 292,800 873,600 240,000 720,000 2,167,000 8. The gross profit recognize from the long term construction contract is: 2019 2020 a. P52,800 P52,800 P547,200 b. P40,800 P240,000 C. d. P40,800 P307,200 P120,000
20 U.S. Metallurgical Incorporated reported the following balances in its financial statements and disclosure notes at December 31, 2023 $ 400,000 320,000 Plan assets Projected benefit obligation U.S.M's actuary determined that 2024 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 2024, and retirees were paid $44,000 from plan assets. Required: 1. What is the pension expense at the end of 2024? 2. What is the projected benefit obligation at the end of 2024? 3. What is the plan assets balance at the end of 2024? 4. What is the net pension asset or net pension liability at the end of 2024? 5. Prepare journal entries to record the (a) pension expense, (b) funding of plan assets, and (c) retiree benefit payments. Complete this question by entering your answers in the tabs below. Req 1 to 4 Req 5 1. What is the pension expense at the end of 2024? 2.…