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
bixtya [17]
3 years ago
12

On June 1, 2015, the Crocus Company began construction of a new manufacturing plant. The plant was completed on October 31, 2016

. Expenditures on the project were as follows ($ in millions): July 1, 2015 54 October 1, 2015 22 February 1, 2016 30 April 1, 2016 21 September 1, 2016 20 October 1, 2016 6 On July 1, 2015, Crocus obtained a $70 million construction loan with a 6% interest rate. The loan was outstanding through the end of October, 2016. The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 8%. This note was outstanding during all of 2015 and 2016. The company's fiscal year-end is December 31.
What is the amount of interest that Crocus should capitalize in 2016, using the specific interest method (rounded to the nearest thousand dollars)?
Business
1 answer:
satela [25.4K]3 years ago
3 0

Answer:

$7,117,000

Explanation:

There is some information missing that I looked up, hopefully the numbers are the same, but if not you can adjust them.

Weighted average expenditures:

July 1, 2015, $54  million

October 1, 2015, $22  million

February 1, 2016, $30  million

April 1, 2016, $21 million

September 1, 2016, $20  million

October 1, 2016, $6 million

we must first determine the amount of interest for 2015:

[($54 x 6/6) + ($22 x 3/6)] x 6% / 6/12 = $1.95 million

weighted average expenditures 2016:

  • ($54 + $22 + $1.95 = $77.95) x 10/10 = $77.95
  • $30 x 9/10 = $27
  • $21 x 7/10 = $14.7
  • $20 x 2/10 = $4
  • $6 x 1/10 = $0.6
  • total $124.25 million

interests:

  • $70 x 6% x 10/12 = $3,500,000
  • ($124.25 - $70) x 8% x 10/12 = $3,617,000 (rounded to nearest thousand)
  • Total = $7,117,000

You might be interested in
In computing its predetermined overhead rate, Brady Company neglected to include its factory insurance cost. This error will res
Ann [662]

Answer:

The correct answer is the letter b. “The cost of goods sold to be understated.”

Explanation:

In calculating its indirect profit rate, Brady Company no longer included a cost component. By dividing the total cost by the products sold, the cost of each individual product will be underestimated, this will underestimate all the production sold, meaning the costs of the products will appear to be lower than they really are, and your profits will appear to be higher than they really are.

8 0
3 years ago
If a company has five employees with annual salaries of $40,000, $90,000, $40,000, $30,000, and $80,000, respectively, what is t
inessss [21]
Mean is where you add all of the values together and then divide the total by the number of values.

 After doing this, you should see this...

20,000+40,000+20,000+60,000+70,000 = 210,000

 After you get this number, you divide by the number of values, in this case, 5.

 210,000/5 = 42,000

6 0
3 years ago
The amount of money you must pay before your insurance company begins to pay is called the
son4ous [18]
The answer is a deductible
8 0
3 years ago
The two main goals of corporations were to eliminate competitors and _____. to increase their own profits, to reduce consumer co
sergiy2304 [10]

To increase their own profits. <span>Increasing company’s profit is one of the main goals of the corporations and also of its shareholders. This is because a company is made to accumulate wealth of everyone who invested in it. This is also one way company can continue their operation, since profit is the bloodline of every businesses.</span>

8 0
4 years ago
Ethical Concerns in Human Resources
Dennis_Churaev [7]

Answer:

Ethical Concerns in Human Resources

Matching Ethical Issues with Ethical Concerns:

A. Mike, a new employee, was distressed to learn that he was expected to help with the illegal dumping of medical waste.

3. Right of freedom of conscience

B. One of the important messages of HIPPA (the Health Insurance Portability and Accountability Act) is the need to keep employee health records confidential.

2. Right of privacy

C. Sharon complains because the employer hired her for the day shift, but now she is expected to work the midnight shift.

5. Right of free consent

D. Many companies establish Employee Assistance Programs (EAPs), which offer employees many important benefits, including a complaint process so that employees will feel free to share their concerns.

1. Right of freedom of speech

E. Ed felt he was being demoted because of his age, not of his performance, so he asked for a meeting with the director of HR.

4. Right to due process

Explanation:

Data:

Ethical Concerns:

1. Right of freedom of speech

2. Right of privacy

3. Right of freedom of conscience

4. Right to due process

5. Right of free consent

b) Ethical principles:

Mutual benefits: This principle refers to equity in sharing benefits and costs.

Assumption of responsibility: This principle demands accountability with responsibility.

Having a sense of purpose or vision: This principle refers to the fulfilment of purpose that is considered reasonable by others.

Fairness: The principle requires the absence of favoritism  and discrimination.

8 0
3 years ago
Other questions:
  • Today’s job seekers can choose whether to use technology to apply for any job or they can submit paper versions of all documents
    5·2 answers
  • Risa has to work long hours and sometimes weekends, losing out on family time. Risa doesn't find her long hours overly stressful
    9·1 answer
  • The single-price monopolist produces where price is ___________ than marginal cost because for it price is __________ than margi
    13·1 answer
  • In a _________, the underwriters agree to make an attempt to sell the IPO for the firm. If the underwriter can get enough invest
    13·1 answer
  • What are examples of current liability in accounting
    11·1 answer
  • What is the maximum number of withdrawals per month for a money market account?
    8·1 answer
  • Stanky Company had the following journal entries related to production for the period Work-in-Process 11,500 Raw Materials 11,50
    14·1 answer
  • The balanced scorecard is a unique system of performance measures in that it: (Check all that apply.) Multiple select question.
    15·1 answer
  • 3. Lily is an accountant at Strawn and Simpson. She has done an excellent job and has received a number of promotions and raises
    7·1 answer
  • The Field Detergent Company sold merchandise to the Abel Company on June 30, 2016. Payment was made in the form of a noninterest
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!