YONEX Company constructed an asset for its own use. Construction started on January 1, 2019 and the asset was completed on December 31,2019. Expenditures of construction cost of $1,560,000 were evenly incurred during the construction period, and the company has the following outstanding obligations prior to the start of the construction: Specific borrowing $700,000, 16%, due December 31,2020 General borrowing $300,000, 12% due December 31,2019 General borrowing $200,000, 12% due December 31,2019 What is the total cost of the self constructed asset?
YONEX Company constructed an asset for its own use. Construction started on January 1, 2019 and the asset was completed on December 31,2019. Expenditures of construction cost of $1,560,000 were evenly incurred during the construction period, and the company has the following outstanding obligations prior to the start of the construction: Specific borrowing $700,000, 16%, due December 31,2020 General borrowing $300,000, 12% due December 31,2019 General borrowing $200,000, 12% due December 31,2019 What is the total cost of the self constructed asset?
Chapter1: Financial Statements And Business Decisions
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YONEX Company constructed an asset for its own use. Construction started on January 1, 2019 and the asset was completed on December 31,2019. Expenditures of construction cost of $1,560,000 were evenly incurred during the construction period, and the company has the following outstanding obligations prior to the start of the construction:
Specific borrowing $700,000, 16%, due December 31,2020
General borrowing $300,000, 12% due December 31,2019
General borrowing $200,000, 12% due December 31,2019
What is the total cost of the self constructed asset?
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