Martinez Furniture Company started construction of a combination office and warehouse building for its own use at an estimated c
ost of $7,500,000 on January 1, 2020. Martinez expected to complete the building by December 31, 2020. Martinez has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semi-annually, issued December 31, 2019, $3,000,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021, 2,100,000 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 1,500,000
Compute the avoidable interest on this project.
Compute the avoidable interest on this project.
1 answer:
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Answer:
Total cost for 316 returns $3,962
Total cost for 408 returns $4,974
Total cost for 524 returns $6,250
Explanation:
The total cost incurred by Pharoah with the Mega Tax software is given by the fixed cost of $486, referring to the annual fees, added to the cost per tax return of $11 multiplied by the volume of returns filed (n):
i. if 316 returns are filed? (n = 316)
ii. If 408 returns are filed? (n = 408)
iii. If 524 returns are filed? (n = 524)
Total cost for 316 returns $3,962
Total cost for 408 returns $4,974
Total cost for 524 returns $6,250