Business, 14.06.2021 15:30 BeverlyFarmer

On January 1, 2021, the company obtained a $3 million loan with a 11% interest rate. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 2021 $1200,000
March 1 , 2021 660,000
June 30, 2021 520,000
October 1, 2021 620,000
January 31, 2022 360,000
April 30, 2022 675,000
August 31, 2022 1,080,000

On January 1, 2021, the company obtained a $3 million construction loan with a 11% interest rate. Assume the $3 million loan is not specifically tied to construction Of the building. The loan was outstanding all Of 2021 and 2022. The company's other interest-bearing debt included two long-term notes of $4,200,000 and $6,200,000 with interest rates of 6% and 8%, respectively. Both notes were outstanding during all Of 2021 and 2022. Interest is paid annually on all debt. The company's fiscal year-end is December 31.

Required:
a. Calculate the amount of interest that Mason should capitalize in 2021 and 2022 using the weighted-average method.
b. What is the total cost of the building?
c. Calculate the amount of interest expense that will appear in the 2021 and 2022 income statements.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 23:00

James has set the goal of achieving all "a"s during this year of school.which term best describes this goal

Answers: 2

Answer

Business, 22.06.2019 20:40

Review the wbs and gantt chart you created previously. propose three to five additional activities that would you estimate resources and durations. now, identify at least eight milestones for the recreation and wellness intranet project. remember that milestones normally have no duration, so you must have tasks that will lead to completing the milestone. add your activities and milestones to your gantt chart, creating a new gantt chart. estimate the task durations and enter dependencies as appropriate. remember that your schedule goal for the project is six months. copy the gantt chart and network diagram to a word document.

Answers: 2

Answer

Business, 22.06.2019 22:20

Which of the following is one disadvantage of renting a place to live compared to buying a home? a. tenants have to pay for all repairs to the building. b. the landlord covers the expenses of maintaining the property. c. residents can't alter their living space without permission. d. rent is generally more than monthly mortgage payments.

Answers: 1

Answer

Business, 23.06.2019 12:10

Amanda is a certified public accountant. she wants to work as an auditor with a firm in the state of california. which accounting body must she get herself registered with? a. security and exchange commission b. financial institution regulating authority c. state board of accountancy d. government accounting standard board

Answers: 2

Answer

You know the right answer?

On January 1, 2021, the company obtained a $3 million loan with a 11% interest rate. The building wa...

Questions