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den301095 [7]
3 years ago
7

6. On 3/1/19, Kepple Inc. borrowed funds on a 12%, two-year note, to finance the construction of a new warehouse which qualifies

for interest capitalization. Construction on the project began on 4/1/19 and was completed on 11/1/19. Kepple has a calendar year-end. Rounded to the nearest whole month, over how many total months in 2019 should interest be capitalized under the current interest capitalization rules?
Business
1 answer:
Tcecarenko [31]3 years ago
3 0

Answer:

The interest would be capitalized for 7 months time and must be calculated at 12% of the actual amount used for the construction of the new warehouse.    

Explanation:

The interest can only be capitalized for the period the loan amount was used to make the asset ready for use. Also note that the part of loan amount used will only be used to calculate the interest which would be capitalized which means if the company borrowed $1.2 million at 12% and used only $0.6 million of the total loan for construction of the building then the amount used will be $0.6 to compute the interest that will be capitalized.

The time period will be the corresponding time of commencement of construction and amount borrowed to the date the construction of the asset has been completed. So here, the time period for which the interest would be capitalized would be for 7 months (4/1/19 - 11/1/19) because the construction was completed within 7 months.

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IrinaK [193]

Answer:

standard set by the company and those delivered by the employees.

Explanation:

Gap model of service quality deals with providing the best of the services to the customers or improved services to the customers. It deals with bridging the gap between the customers expectations and employees services.

Gap model of service quality comprises of finding out the gaps and then working over it.

In this case where Ambient Management, Inc. was experiencing a gap in the services it was providing. It closed the gap by ensuring that its customer-facing staff had the skills, training, and proper tools to perform their job. For this purpose it dealt with the delivery gap which shows the difference between the services provided and expected by the customers.

This gap was filled by the company by providing proper training ,skills and resources to the customers.

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3 years ago
What do you think is the most important thing an advertising professional must remember when using social media?
Jobisdone [24]

Answer: the target audience

Explanation: you have to n remember who the post is intended for.

4 0
3 years ago
How do we affect the economy?
Delvig [45]
human settlement and migration, the gathering of raw materials, and the manufacturing of finished products.
3 0
2 years ago
Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materials $16; direct lab
SCORPION-xisa [38]

Answer:

Selling price= $51.48

Explanation:

Giving the following information:

Direct materials $16

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6 0
3 years ago
Touchtech earns revenue when edison purchases 100 shares, even if he purchases them from an existing shareholder.
Strike441 [17]

Answer:

A. An increase in the perceived profitability of Touchtech will likely cause the value of Edison's shares to rise.

B. Expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of Edison's shares to decline

Explanation:

The price of the stock changes only because of the changes in the profitability of the firm. If the company is earning lower profits then the prices of the stock will fall and vice versa. So the option A is correct because increase in profitability increases the value of the shares.

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6 0
3 years ago
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