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
Karolina [17]
3 years ago
9

A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for

construction were as follows: January 1, $530,000; March 31, $630,000; June 30, $430,000; October 30, $690,000. To help finance construction, the company arranged a 10% construction loan on January 1 for $760,000. The company’s other borrowings, outstanding for the whole year, consisted of a $4 million loan and a $6 million note with interest rates of 13% and 6%, respectively.
Required:
Assuming the company uses the specific interest method, calculate the amount of interest capitalized for the year.
Business
1 answer:
7nadin3 [17]3 years ago
6 0

Answer:

total capitalized interests = $126,380

Explanation:

Weighted average expenditures:

January 1 = $530,000 x 12/12 = $530,000

March 31 = $630,000 x 9/12 = $472,500

June 30 = $430,000 x 6/12 = $215,000

October 30 = $690,000 x 2/12 = $115,000

total weighted expenditures = $1,332,500

weighted interest rate:

$4,000,000 x 13% = $520,000

$6,000,000 x 6% = $360,000

total = $880,000 / $10,000,000 = 8.8%

capitalized interest:

$760,000 x 10% = $76,000

($1,332,500 - $760,000) x 8.8% = $50,380

total capitalized interests = $126,380

You might be interested in
Sanibel Autos Inc. merged with its competitor Vroom Autos Inc. This allowed Sanibel Autos to use its technological competencies
Nimfa-mama [501]

Answer:

Horizontal integration

Explanation:

Integration is a strategy used by businesses to gain a better market share. It involves cooperating with other business owners to increase sales for both parties.

Horizontal integration is when businesses bate the same level in the value chain collaborate to increase profits.

In the give scenario Sanibel Autos Inc. merged with its competitor Vroom Autos Inc, and Sanibel Autos to use its technological competencies along with Vroom Autos' marketing capabilities to capture a larger market share.

The stage of value chain is when businesses prospect for customers. This interpretation enables them gain more customers.

8 0
3 years ago
Wren and Zola are on a team that has been assigned to cut production costs in an electronic component production facility. For s
aksik [14]

Answer:

B) Norming

Explanation:

Analyzing the scenario above, it is possible to state that Wren and Zola are in the team development norming stage.

At this stage, there is an increase in the identification of the role of each member and their goal in a team. There is a decrease in previous conflicts and an increase in group identity, which helps to develop tasks more effectively and jointly, where each member has a well-defined responsibility and the leader has the essential role of regulating the group and assisting in the development the responsibilities of each one, which will lead to effectiveness in achieving the team's objectives.

7 0
3 years ago
The three contemporary management perspectives are the ______ viewpoints.
Anastaziya [24]
The answer to this question is: <span>Sytems viewpoint, contingency viewpoint, and quality management
</span>System viewpoint refers to an approach to problem-solving that see the problem at a whole. Contingency viewpoint is a developmental effort that made into managerial approach, and quality management refers to the effort to maintain the standard result of our tasks
6 0
3 years ago
Read 2 more answers
Zanny Electronics Corporation uses a standard cost system for the production of its water ski radios. The direct labor standard
AlexFokin [52]

Answer:

Labor Rate Variance = - $1,188 Unfavorable

Explanation:

Provided labor hours for each radio = 0.9

Standard labor cost per hour = $7.20

Actual labor cost = $48,708

Actual labor hours = 6,600

Actual labor rate = $48,708/6,600 = $7.38

Labor Rate Variance = (Standard Rate - Actual Rate) \times Actual Hours

= ($7.20 - $7.38) \times 6,600 =<em><u> - $1,188 Unfavorable</u></em>

6 0
3 years ago
Some policymakers have argued that products like​ cigarettes, alcohol, and sweetened soda generate negative externalities in con
White raven [17]

Answer: The correct answers are "decrease" and "decrease".

Explanation: Some policymakers have argued that products like​ cigarettes, alcohol, and sweetened soda generate negative externalities in consumption. All else​ equal, if the government decided to impose a tax on​ soda, the equilibrium quantity of soda would​ <u>decrease</u> and the equilibrium price of soda would​ <u>decrease.</u>

4 0
3 years ago
Other questions:
  • Arianna is responsible for the cleaning, pet, and paper products in the grocery store where she works. she considers herself an
    13·2 answers
  • Rather than subscribing to a public microblogging service, some companies implement ________ that are intended for internal use
    14·1 answer
  • Nessca corp. manufactures electronic gadgets. it instructs its marketing team to competitively advertise and promote its gadgets
    9·2 answers
  • You want a new cell phone. Which of these sources would be the most dependable?
    12·2 answers
  • Commissions on the sale of _________ goods and commissions on financial transactions are counted in the gdp as part of “services
    9·1 answer
  • Kansas Enterprises purchased equipment for $73,500 on January 1, 2021. The equipment is expected to have a five-year service lif
    9·1 answer
  • Billie Bradford worked for the Kentucky Department of Community Based Services (DCBS). One of Bradford’s co-workers, Lisa Stande
    9·1 answer
  • Outback Corp. recorded sales of $1,300,000 in 2010, in addition the company's accounts receivable balance grew from $120,000 at
    12·1 answer
  • Goal-setting theory is one of the most influential management practices. there is strong evidence that setting goals:______.
    9·1 answer
  • Where do financial institutions get the funds that they lend to customers?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!