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Nutka1998 [239]
2 years ago
14

On January 1, 2021, Kendall Inc. began construction of an automated cattle feeder system. The system was finished and ready for

use on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $ 220,000 September 1, 2021 $ 324,000 December 31, 2021 $ 324,000 March 31, 2022 $ 324,000 September 30, 2022 $ 220,000 Kendall borrowed $758,000 on a construction loan at 10% interest on January 1, 2021. This loan was outstanding throughout the construction period. The company had $4,540,000 in 7% bonds payable outstanding in 2021 and 2022. Interest (using the weighted-average method) capitalized for 2021 was:
Business
1 answer:
julsineya [31]2 years ago
7 0

Answer:

Interest capitalized for 2021 was $32,800.

Explanation:

The weighted-average method of computing capitalized interest is obtained by multiplying the interest by the sum of the weight of each expenditure based on the number of months within a year. This can be obtained in 2021 for this question as follows:

Weighted expenditure from January 1, 2021 to December 31, 2021 = $220,000 * (12 months / 12 months) = $220,000.

Weighted expenditure from September 1, 2021 to December 31, 2021 = $324,000 * (4 months / 12 months) = $108,000.

Weighted expenditure from December 31, 2021 to December 31, 2021 = $324,000 * (0 months / 12 months) = $0.

Sum of weighted expenditure for for 2021 = $220,000 + $108,000 + $0 = $328,000

Interest capitalized for 2021 = Sum of weighted expenditure for for 2021 * Interest on construction loan = $328,000 * 10% = $32,800

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likoan [24]

Answer:

$28

Explanation:

The computation of the total value that would be created in the exchange is shown below;

The Deltra surplus is

= Purchase value - agreed price

= $60 - $36

= $24

And, the Deirdre surplus is

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Now the total value created is

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5 0
3 years ago
Which of the following statement is not true about derivative contracts?
8090 [49]

Answer:

a. A long position is a bet that the number is going to fall while a short position is a bet that the number will rise in the future.

Explanation:

The derivative contract is a contract in which the contract is to be done between two or more parties regarding the value i.e. depend upon the financial asset i.e. underlying. It involves the bonds, commodities, etc

So according to the given options, the option a is correct as long position is a bet in which the number is to be decline while on the other hand in the short position the number would increase

4 0
2 years ago
Assume that Saudi Arabia has production possibilities to produce either 100 barrels of oil using 100 worker hours or 25 bushels
Hatshy [7]

Answer: 10 bushels

Explanation:

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For bushels however, 1 worker hour produces:

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If 60 barrels of oil are produced, it means 60 worker hours were used which would leave 40 worker hours.

Bushels of corn produced is therefore:

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5 0
2 years ago
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Vika [28.1K]

Answer:C.overreliance on volume as a basis for allocating overhead costs where products differ regarding the number of units produced, lot size, or complexity ofproduction.

6 0
3 years ago
Mayra offers to sell her home to Hanna for "about $100,000 plus closing costs" and has no other comments, provisions, or discuss
Ivanshal [37]

Answer:

The most probable result is that the court will declare the contract invalid and non-binding because the purchase price and important terms regarding the consideration involve are too vague and indefinite.

In order for a contract to be considered valid and binding, consideration must exist and the more precise the terms, the better. Consideration is something of value that both parties exchange. In this case it is a house vs. money, but the price is not specified.

4 0
2 years ago
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