Silverline Freight Company started construction of a combination office and warehouse building for its own use at an estimated cost of $3,540,000 on January 1, 2017. Silverline expected to complete the building by December 31, 2017. Silverline had the following debt obligations outstanding during the construction period: Construction loan: 7.5% interest, payable monthly, issued January 1, 2017 in the amount of $1,400,000 Short-term loan: 8% interest, payable monthly; principal payable at maturity on May 30, 2019 in the amount of $750,000 Long-term loan: 7% interest, payable on January 1 of each year; principal payable on January 1, 2021 in the amount of $900,000 Required (a) Assume that Silverline completed the office and warehouse building on December 31, 2017 for a total cost of $3,820,000, and the weighted average of accumulated expenditures was $2,190,000. Compute the avoidable interest on this project. (Round interest rates to two decimal places.) Round your final calculation to the nearest whole dollar. (b) Compute the depreciation expense for the year ended December 31, 2018. Silverline elected to depreciate the building on a straight-line basis and estimates that it has a useful life of 30 years with zero salvage value. Round your final calculation to the nearest whole dollar.

IvanhoeFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $10,500,000 on January 1, 2020. Ivanhoe expected to complete the building by December 31, 2020. Ivanhoe has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019   $4,200,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021   3,150,000 Long-term loan-11% interest, payable on January 1 of each  year. Principal payable on January 1, 2024   2,100,000   Compute the depreciation expense for the year ended December 31, 2021. Ivanhoe 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 $630,000. (Round answer to 0 decimal places, e.g. 5,275.) Depreciation Expense   $

During 2017, Egyptian Mau Company construct building costing P18,500,000. The weighted average accumulated expenditures on the building during 2017 totaled P7,800,000. The entity borrowed P4,000,000 at 7% on January 1, 2017. Funds not needed for construction were temporarily invested in short-term securities, and earned P120,000 interest revenue. In addition to the construction loan, the entity had two other notes outstanding during the year, P3,000,000, 10-year, 10% note payable dated October 1, 2015, and a 5-year P2,000,000, 8% note payable dated November 2, 2015. What amount of interest should be capitalized on December 31, 2017? A. 574,000 B. 620,000 C. 509,600 D. 629,600

In 2024, KP Building Incorporated began work on a four-year construction project (called Cincy One). The contract price is $460 million. KP recognizes revenue on this contract over time according to percentage of completion. At the end of 2024, the following financial statement information indicates the results to date for Cincy One: INCOME STATEMENT:         Gross profit (before-taxes) recognized in 2024     $ 43 million BALANCE SHEET:         Accounts receivable from construction billings     $ 30 million Construction in progress $ 86 million     Less: Billings on construction $ (96 million)     Net billings in excess of construction in progress     $ 10 million Required: Compute the following, placing your answer in the spaces provided and showing supporting computations below. Note: Round your percentage answer to the nearest whole number. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).

On January 1, 2014, Fabco borrowed $5,000,000 from First Bank of Newburg. The loan had a term of five years with the principal amount due at the end of the fifth year. Interest is at an annual rate of 6% with interest being paid semiannually on June 30 and December 31. In connection with the loan, the borrower incurred $84,438 of debt issuance costs that are to be amortized over the term of the loan. The effective interest method is to be used to account for the loan. Fabco was able to make the first two semiannual debt service payments, but then began to see a serious deterioration in its business. Fabco is currently in default on a number of debts and is unable to secure additional capital at market rates of interest. Based on projected cash flows, it is doubtful that the company will continue as a going concern. The company accrued the interest due on June 30, 2015, but is unable to make the interest payment. In an attempt to resolve these serious issues, Fabco received concessions…