Thornton Industries began construction of a warehouse on July 1, 2024. The project was completed on March 31, 2025. No new loans were required to fund construction. Thornton does have the following two interest - bearing liabilities that were outstanding throughout the construction period: $4,000,000, 9% note $6,000,000, 6% bonds Construction expenditures incurred were as follows: July 1, 2024 $ 430,000 September 30, 2024 630,000 November 30, 2024 630, 000 January 30, 2025 570,000 The company's fiscal year-end is December 31. Required: Calculate the amount of interest capitalized for 2024 and 2025.
Thornton Industries began construction of a warehouse on July 1, 2024. The project was completed on March 31, 2025. No new loans were required to fund construction. Thornton does have the following two interest - bearing liabilities that were outstanding throughout the construction period: $4,000,000, 9% note $6,000,000, 6% bonds Construction expenditures incurred were as follows: July 1, 2024 $ 430,000 September 30, 2024 630,000 November 30, 2024 630, 000 January 30, 2025 570,000 The company's fiscal year-end is December 31. Required: Calculate the amount of interest capitalized for 2024 and 2025.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Thornton Industries began construction of a warehouse on July 1, 2024. The project was completed on
March 31, 2025. No new loans were required to fund construction. Thornton does have the following two
interest - bearing liabilities that were outstanding throughout the construction period: $4,000,000, 9% note
$6,000,000, 6% bonds Construction expenditures incurred were as follows: July 1, 2024 $430,000
September 30, 2024 630,000 November 30, 2024 630, 000 January 30, 2025 570,000 The company's fiscal
year-end is December 31. Required: Calculate the amount of interest capitalized for 2024 and 2025.
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