Wildhorse Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$1,485,000 on March 1, HK$996,000 on June 1, and HK$2,409,000 on December 31. Wildhorse Ltd. had outstanding all year a 8%, 5-year, HK$4,160,000 note payable and an 9%, 4-year, HK$3,640,000 note payable. Determine the amount of borrowing cost that Wildhorse Ltd. would capitalize. Use the capitalization rate used for borrowing cost capitalization purposes. (Round "Capitalization rate" to 2 decimal places, e.g. 2.51 and final answer to 0 decimal places, e.g. 5,275.) Borrowing cost capitalization HK$ 1630000

Wildhorse Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$1,485,000 on March 1, HK$996,000 on June 1, and HK$2,409,000 on December 31. Wildhorse Ltd. had outstanding all year a 8%, 5-year, HK$4,160,000 note payable and an 9%, 4-year, HK$3,640,000 note payable. Determine the amount of borrowing cost that Wildhorse Ltd. would capitalize. Use the capitalization rate used for borrowing cost capitalization purposes. (Round "Capitalization rate" to 2 decimal places, e.g. 2.51 and final answer to 0 decimal places, e.g. 5,275.) Borrowing cost capitalization HK$ 1630000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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