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MariettaO [177]
3 years ago
11

Use the following information . On January 1, 2018, Dennis Company purchased land for an office site by paying $540,000 cash. De

nnis began construction on the office building on Jan 1. The following expenditures were incurred for construction: Date Expenditures January 1, 2018 $ 360,000 April 1, 2018 504,000 May 1, 2018 900,000 June 1, 2018 1,440,000 The office was completed and ready for occupancy on July 1st of the following year. To help pay for construction, $720,000 was borrowed on January 1, 2018 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2018 was a $300,000, 12%, 6-year note payable dated January 1, 2016. Assume the weighted-average accumulated expenditures for the construction project are $870,000. The amount of interest cost to be capitalized during 2018 is:___________.
Business
1 answer:
FromTheMoon [43]3 years ago
8 0

Answer:

$82,800

Explanation:

The computation of the amount of interest cost to be capitalized during 2018 is shown below:-

Amount of interest cost to be capitalized = (Borrowed amount × Rate of interest) + ($300,000 ÷ 2 × Rate of interest)

= ($720,000 × 9%) + ($150,000 × 12%)

= $82,800

Therefore for computing the amount of interest cost to be capitalized during 2018 we simply applied the above formula.

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David, an Alabama resident, files suit in an Alabama court against QuickAds, an internet company based in Georgia that provides
Katena32 [7]

Answer:

b) not likely to have jurisdiction over the case because QuickAds is based in Georgia.

Explanation:

The Alabama court only has jurisdiction in actions that were performed within the boundary of the state of Alabama. Although David is a resident of Alabama, his law suit is likely due to actions carried out in Georgia where QuickAds the internet company is based.

Also QuickAds only contact with persons in Alabama has been through QuickAds passive advertising.

In this scenario the case can be tried in federal court because it can handle cases across state borders.

5 0
3 years ago
Read 2 more answers
An augmented product is any extra value that is attached to a physical product that is sold.
sesenic [268]
An augmented product is something that has physical and non-physical attributes that add to the value of the product itself. 
4 0
3 years ago
Sparkling Water, Inc., expects to sell 3.7 million bottles of drinking water each year in perpetuity. This year each bottle will
MrRa [10]

Answer:

$39,345,664.93

Explanation:

The computation of the company worth today is as follows:

Present value of revenues after tax is

= $3,700,000 × 1.46 × (1 - 0.25) ÷ (0.07 - 0.018)

= $77,913,461.54

And, Present value of costs after tax is

= $3,700,000 × 0.82 × (1 -0.25) ÷ (0.07-0.011)

= $38,567,796.61

So, the company worth today is

=  $77,913,461.54 - $38,567,796.61

= $39,345,664.93

3 0
3 years ago
If Apr of a savings account is 2.7% and interest is compounded quarterly, what is the approximate APY of the account
solniwko [45]

Answer:

0.0273 = 2.7%

Explanation:

APY = (1 + r/m)^m - 1

       = (1 + 0.027/4)^4   -  1

       = 0.0273 = 2.73%

8 0
2 years ago
The Sealing Company has 1,500 bonds outstanding that are selling for $1,060 each. The company also has 5,000 shares of preferred
iris [78.8K]

The weight of the common stock as it relates to the firm's weighted average cost of capital is <u>35%</u>.

<h3>What is the weighted average cost of capital?</h3>

The weighted average cost of capital computes a firm's cost of capital based on the firm's average cost of capital from all sources: common stock, preferred stock, bonds, and other forms of debt.

The weight of the common stock can be determined by dividing the common stock market value by the total capitalization from all sources.

<h3>Data and Calculations:</h3>

Outstanding:

Bonds payable = $1,590,000 (1,500 x $1,060)

Preferred stock = $160,000 (5,000 x $32)

Common stock = $936,000 (36,000 x $26)

Total debts and equity = $2,686,000

Weight of common stock = 35% ($936,000/$2,686,000 x 100)

Thus, the weight of the common stock as it relates to the firm's weighted average cost of capital is <u>35%</u>.

Learn more about the weighted average cost of capital at brainly.com/question/14703616

4 0
2 years ago
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