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
Zanzabum
3 years ago
9

Interest is eligible to be capitalized as part of an asset's cost, rather than being expensed immediately, when:

Business
1 answer:
Lelu [443]3 years ago
4 0

Answer:

The Asset is a Qualifying Asset.

Explanation:

Qualifying Assets take substantial period of <em>time</em> to get ready for its intended use and purpose and that will require capitalizing interest costs or borrowing cost to the asset.

You might be interested in
Frank purchased his house 16 years ago by taking out a 25-year mortgage for $150,000. the mortgage has a fixed interest rate of
Andrej [43]
The current value of the mortgage will be given by:
A=P(1+r/100)^n
where:
P=$150,000
r=5%
n=16 years
therefore:
A=150000(1+5/100)^16
A=150000(1.05)^16
A=$201,014.35
If He wants to pay off his mortgage now, he needs $201,014.35
4 0
3 years ago
Read 2 more answers
You are going into business with 4 equal partners (not counting yourself). If in 6 years, the business is making a profit of $1,
GarryVolchara [31]
I think ty best answer would be b.
3 0
3 years ago
A gourmet coffee shop in downtown San Francisco is open 200 days a year and sells an average of 76 pounds of Kona coffee beans a
Slav-nsk [51]

Answer:

Explanation:

Base on the scenario been described in the question, we use the following method to solve the question

d = 75 lbs/day 200 days per year

D= 15,000 lb/year H= $3/lb/year S= $16/order

6 0
3 years ago
A firm has an equity multiplier of 1.57, an unlevered cost of equity of 14 percent, a levered cost of equity of 15.6 percent, an
Elanso [62]

Answer:

10.45%

Explanation:

Calculation to determine the cost of debt

B/S = 1.57 − 1

B/S = .57

.156 = .14 + .57(1 −.21)(.14 − RB)

.156 = .14 + .57(.79)(.14 − RB)

RB = .1045*100

RB= 10.45%

Therefore the cost of debt is 10.45%

6 0
3 years ago
Suppose the economy is in a liquidity trap. True or false. A monetary contraction will not have any effect on the nominal intere
swat32

Answer:

False

Explanation:

When a country is in a liquidity trap , monetary policy both contractionary and expansionary would have an effect on interest rate

8 0
3 years ago
Other questions:
  • Maybelline falls down a well and is saved when her neighbor Ruben makes a very daring rescue. Ruben hoists her to safety, and Ma
    15·1 answer
  • Which of the following statements is true a. ​in market equilibrium there are unconsummated value-creating transactions b. ​in m
    8·2 answers
  • Our company makes sophisticated lenses for satellite cameras. We allocated our overhead (OH) costs using practical equipment mac
    15·1 answer
  • _____ requires that employees be given opportunities to provide input, discuss their performance, and appeal any decision they b
    14·1 answer
  • To choose the best training method, a company should consider such factors as the number of people to be trained, the cost of tr
    6·1 answer
  • A farm is currently producing at point C on this curve.
    11·1 answer
  • Ever since e-commerce started rising in prominence, the value of the retail showroom has diminished significantly. After all, co
    11·1 answer
  • A master franchisee, in addition to having the right to open and operate a specific number of locations in a particular area, al
    8·1 answer
  • Depreciation--Jerry Company purchased machinery for $315,000 on May 1,2020 . It is estimated that it will have an useful life of
    8·1 answer
  • What is the name given to the development of a new good?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!