Business, 03.10.2021 23:10 valereeolivarez56

Marigold Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $8,500,000 on January 1, 2020. Marigold expected to complete the building by December 31, 2020. Marigold has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 $3,400,000
Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 2,550,000
Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 1,700,000
Assume that Marigold completed the office and warehouse building on December 31, 2020, as planned at a total cost of $8,840,000, and the weighted-average amount of accumulated expenditures was $6,120,000. Compute the avoidable interest on this project.
Compute the depreciation expense for the year ended December 31, 2021. Marigold 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 $510,000.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 20:20

Why is it easier for new entrants to get involved in radical innovations when compared to incumbent firms? a. unlike incumbent firms, new entrants do not have to face the high entry barriers, initially. b. new entrants are embedded in an innovation ecosystem, while incumbent firms are not. c. unlike incumbent firms, new entrants do not have formal organizational structures and processes. d. incumbent firms do not have the advantages of network effects that new entrants have.

Answers: 2

Answer

Business, 22.06.2019 21:30

Consider the following three bond quotes; a treasury note quoted at 87.25, and a corporate bond quoted at 102.42, and a municipal bond quoted at 101.45. if the treasury and corporate bonds have a par value of $1,000 and the municipal bond has a par value of $5,000, what is the price of these three bonds in dollars? multiple choice $872.50, $1,000, $1,000, respectively $1,000, $1,024.20, $1,001.45, respectively $872.50, $1,024.20, $5,072.50, respectively $1,000, $1,000, $1,000, respectively

Answers: 3

Answer

Business, 23.06.2019 00:50

On january 1 of the current year, jimmy's sandwich company reported owner's capital totaling $128,000. during the current year, total revenues were $106,000 while total expenses were $95,500. also, during the current year jimmy withdrew $30,000 from the company. no other changes in equity occurred during the year. if, on december 31 of the current year, total assets are $206,000, the change in owner's capital during the year was:

Answers: 3

Answer

Business, 23.06.2019 20:50

Adepression can occur in the expansion phase of a business cycle. true or false

Answers: 2

Answer

You know the right answer?

Marigold Furniture Company started construction of a combination office and warehouse building for i...

Questions