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balandron [24]
2 years ago
8

Interest is capitalized when incurred in connection with the construction of plant assets because_______.

Business
1 answer:
Alisiya [41]2 years ago
7 0

Interest is capitalized when incurred in connection with the construction of plant assets because, during construction, the asset is not generating revenue

<h3>What is Interest?</h3>

This refers to the amount or rate that is added to a principal amount and this is usually done when a loan is collected.

Hence, we can see that when plant assets are being constructed, interest is capitalized and the main reason why this happens is that the asset is not generating revenue.

Furthermore, actual interest is the only thing that should be capitalized and this is because, during construction, the asset is not generating revenue and therefore companies should defer (capitalize) interest cost.

Thus, Interest is capitalized when incurred in connection with the construction of plant assets because, during construction, the asset is not generating revenue.

Read more about interest capitalization here:

brainly.com/question/417585

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A person with anorexia nervosa is likely to Multiple Choice
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Answer:

2. grow up in a perfectionistic home with very high expectations.

Explanation:

1- There is no relation with economic conditions

3- There are no relation with how home is flexible

4- If we check where problem comes from and decided that mother can be the reason then even mother has a healthy body we expect person to be normal.

2- Grow up with very perfectionist and expecting lots of issues then anorexia might occur.

7 0
3 years ago
Sarah can study 20 pages per night. each page has three homework problems. if she studies for 3 nights how many homework problem
ss7ja [257]
20 pages in one night times 3 nights = 60. 60 pages times 3 problems per page is 180 problems.

20*3=60
60*3=180
7 0
3 years ago
Tony is a 45-year-old self-employed psychiatrist who has net earned income of $300,000 in 2020. What is the maximum amount he ca
Natali5045456 [20]

Answer:

Tony is a 45-year-old psychiatrist who has net earned income of $300,000 in 2020. What is the maximum amount he can contribute to his SEP for the year? 300,000x.25= 75,000 or $57,000

$57,000

Explanation:

6 0
2 years ago
Petra, Inc. has collected the following data.​ (There are no beginning​ inventories.): Units produced 580 units Units sold 580 u
Debora [2.8K]

Answer:

Operating income is $28,197.2

Explanation:

In order to calculate operating income, first we have to calculate total product cost per unit which is calculated as shown below:

Direct material per unit = $30

Direct labor = $35

Variable manufacturing overhead per unit = $10

Fixed manufacturing overhead per unit = 23,000 ÷ 580 = $39.66 per unit

Product cost per unit = 30 + 35 + 10 + 39.66 = $114.66

Now compute operating income as shown below:

Total sales = Per unit sales price × Units sold

                  = $230 × 580

                  = $133,400

Cost of goods sold = Units produced × product cost per unit

                                = 580 × 114.66

                                = $66,502.8

Gross profit = Sales - COGS

                    = 113,400 - 66,502.8

                    = $46,897.2

Fixed selling and administrative cost = $10,000

Variable selling and administrative cost = 15 × 580 = $8,700

Total selling and administrative cost = 10,000 + 8,700 = $18,700

Operating income = Gross profit - total selling and administrative cost

                               = $46,897.2 - 18,700

                               = $28,197.20

7 0
3 years ago
Ace Corporation engaged Kosier, CPA, to perform a consulting engagement. While driving to Ace's office, Kosier was involved in a
Keith_Richards [23]

Answer:

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Explanation:

An independent contractor is a person who is hired to do a specific job. It is said that she is her own boss because she controls how and where the work is done.

These people have greater freedom and only undertake to perform the specific function they agreed with the person owning a company. For example, the independent contractor agrees that he will serve clients at a 9 a.m. store. at 1 p.m. or that he will go to the meetings and prepare a report on the subject assigned to him. Outside these specific functions, the independent contractor controls how he manages his time.

5 0
3 years ago
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