1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
stepan [7]
3 years ago
9

Sylvester Co. takes out a 12% loan of $500,000 on 1/1/2014 to finance construction of a building for the company’s own use. Cons

truction begins immediately, and $600,000 is spent on the construction at an even pace during 2014. Another $400,000 is spent at an even pace during 2015, with construction completed on 12/31/2015. No other construction loans are taken out. Sylvester incurred unrelated interest expenses of $10,000 and $15,000 in 2014 and 2015, respectively, on loans that bear interest at 10%. How much interest can Sylvester capitalize in 2014 and 2015?
Business
1 answer:
IRINA_888 [86]3 years ago
7 0

Answer:

2014 36,000

205: 24,000

Explanation:

500,000 x 12% = 60,000 construction realted per year

Capitalize:

timeline:

<--/--/--/--/--/--/--/--/--/--/--/--/-->

each month the company is doing an spending related to the construction. We must capitalize based on the amount investment.

The first month capitalize throught the whole year,

the second month 11 months

the third for 10 months and so on.

Therefore, the capitalize amount will be half of the cost of the year

2014: interest capitalized through the cost of construction

600,000/2 x 12% = 36,000

400,000/2 x 12% = 24,000

That's the maximum amount we can capitalize for construction.

You might be interested in
Describe the elements that must be present for the courts to rule that a contract is unconscionable?
Evgesh-ka [11]

The elements that would have to be in place for a contract to be unconscionable would be that

  • They were under pressure
  • They were misled
  • They did not have the right information

<h3>What is meant by a contract?</h3>

This is the term that is used to refer to the fact that two people or more have agreed to do business with themselves.

In order to be a contract, one person would have to create a bargain and the other would be the one that would agree to the terms.

It is unconscionable at the time when the contract is done and the person or one of the parties is found not to have been able to make the contract agreement at their right frame of mind. In this case, the law has the power to protect this party.

Hence they would have to rule in his favor. Therefore to be unconscionable, a contract would have to have been misled, have been made under duress and without the adequate information.

Read more on contracts here:

brainly.com/question/5746834

#SPJ1

7 0
1 year ago
Describing matter worksheet physical property that makes metal pots good for cooking is
bulgar [2K]

The physical property that may be able to provide a beneficiary for metal pots as a source of good cooking is its heat conductivity of which allow this material to be conducted to heat and allows the food to be cooked thoroughly making it good for cooking.

5 0
3 years ago
Two projects, A and B, are analyzed using ranking present worth analysis with MARR at i%. It is found that PW(A) . PW(B). If MAR
vivado [14]

Answer: The relationship between A and B project cannot be determined with the information given.

Explanation: The relationship between PW(A) and PW(B) is the correlation between project A and Project B in a portfolio.

This is not possible to be calculated with the information given.

But an expression of calculating this is;

PW is the present value of A and B projects.

MARR is the minimum acceptable rate of return

The calculate the correlation of the two project, divide MARR by the multiple of the two project.

That is;

Correlation = MARR ÷ [PW(A) × PW(B)]

Therefore;

Correlation = i11% ÷ [PW(A) × PW(B)]

This shows that the relationship cannot be determined with the limited Information supplied.

3 0
3 years ago
A roofing company would like to implement a new method for giving estimates. The owner has narrowed his choice to three differen
galben [10]

The estimators are the blocks in this study

Explanation:

An estimator is a law in statistics for estimating a calculation based on observed figures for a given amount, thereby differentiating the definition, the quantity of value and its consequence. There are estimators for point and time.

To order to measure the time, energy, equipment and function necessary to produce a commodity, constructing a building or provide a service, cost estimators must gather and analyse data. They typically work on a particular company or industry.

It can either be finite-dimensional (parametric and semi-parametric) or infinite-sized (semi-parametric / non-parametric).

3 0
3 years ago
9. Do you believe it is possible for a global company to simultaneously achieve the goals of global efficiency and integration,
Volgvan
<h2>The given statement is true.</h2>

Explanation:

Let us understand the term, "Global Company".

Any company which is known for its business world-wide is termed as "Global company".

The given statement in the question is true. Yes a global company can achieve everything listed.

Since the company is efficient, they can start business all over the world.

Definitely the can span across the world, only by first satisfying the need of the nation.

Surely they will be known for innovation, because the 21st century needs innovation and a company can be popular only if it shows innovating ability.

All the given achievement is possible to get fulfilled.

4 0
3 years ago
Other questions:
  • Suppose a commercial banking system has $240,000 of outstanding checkable deposits and actual reserves of $85,000. If the reserv
    10·1 answer
  • Bonnie and james are retired. they wish to continue to invest in their portfolio and are seeking income instead of growth. which
    11·1 answer
  • An implementation of which security principle ensures that secrets stay secret?
    5·1 answer
  • A loss-purchase buy and sell agreement among three partners, funded with individual life insurance, would require how many polic
    6·1 answer
  • An important way of viewing new products is in terms of their effects on consumption, which from the perspective of consumers is
    6·1 answer
  • The trade-off between current consumption and investment in the capital and research that contributes to economic growth and hig
    6·1 answer
  • You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 4.7 percent indefinitely
    11·1 answer
  • At the heart of operations management is the transformation process through which inputs (resources such as labor, money, materi
    14·1 answer
  • Does the government control all market activity in the United States?
    14·1 answer
  • Which law signed by president george w. bush, allowed for more economic freedom amongst different kinds of businesses on the 401
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!