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jolli1 [7]
3 years ago
5

A company is constructing an asset for its own use. Construction began in 2017. The asset is being financed entirely with a spec

ific new borrowing. Construction expenditures were made in 2017 and 2018 at the end of each quarter. The total amount of interest cost capitalized in 2018 should be determined by applying the interest rate on the specific new borrowing to the:a. total accumulated expenditures for the asset in 2017 and 2018.b. weighted-average accumulated expenditures for the asset in 2017 and 2018.c. weighted-average expenditures for the asset in 2018.d. total expenditures for the asset in 2018.
Business
2 answers:
dimulka [17.4K]3 years ago
4 0

Answer:

The total amount of interest cost capitalized in 2018 should be determined by applying the interest rate on the specific new borrowing to the weighted-average accumulated expenditures for the asset in 2017 and 2018

Explanation:

Interest cost is the increasing value of interest a borrower pays on a debt obligation over the duration of the borrowing. In other words, you pay interest when you borrow and you earn interest when you lend or deposit funds in bank accounts.

Given that construction began in 2017 and expenditures were made in 2017 and 2018; to get the total amount of interest cost capitalized in 2018; we must first get the total accumulated expenditures for assets in 2017 and 2018; after which that weighted average is calculated.

This is so because the weighted-average accumulated expenditures one of the amounts used in determining the amount of interest to be capitalized when a company self-constructs certain long-term assets.

Ira Lisetskai [31]3 years ago
3 0

Answer:

option B

Explanation:

On the off chance that an advantage is being built and is being financed totally with a particular new obtaining. Development costs are spread more than two years The aggregate sum of intrigue cost promoted in the subsequent year is dictated by applying the loan cost on the particular new obtaining to the weighted-normal amassed consumption's for the advantage in both of the years.

The correct answer is option B

 weighted-average accumulated expenditures for the asset in 2017 and 2018.

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1. Assume that the money demand function is (M / P)d = 2,200 – 200r, where r is the interest rate in percent. The money supply M
Wittaler [7]

Answer:

r= 3

Explanation:

Due that the level price does not changed, the first thing that you have to do to find the equilibrium is put the two equations with an equal

Money demand =Supply of money

2,200 – 200 r= 2,000

Now you have to find the value of r and you have to clear the formula and first you have to:

2,800- 2,200 = 200r

Now that you have the number together you have to apply the operation

600 = 200r

As the 200 is multiplying the r you have to pass the 200 to divided the 600

r= (600/200)

r= 3%

The interest rate is 3%

3 0
3 years ago
1. Cullumber Cosmetics acquired 13% of the 301,200 shares of common stock of Elite Fashion at a total cost of $14 per share on M
Helen [10]

Answer:

1. 18-Mar

Dr Available for Sale Securities $548,184

Cr Cash $548,184

30-Jun

Dr Cash $9,113

Cr Dividend Revenue $9,113

31-Dec

Dr Securities Fair Value Adjustment $39,156

Cr Unrealized Holding Gain $39,156

2.1-Jan

Dr Investmeht in Nadal Corp. $81,750

Cr Cash $81,750

15-Jun

Dr Cash $7,900

Cr Investment in Nadal Corp. $7,900

31-Dec

Dr Investment in Nadal $29,000

Cr Revenue from Investment in Sub $29,000

Explanation:

1.Preparation of all the necessary journal entries for 2019

18-Mar

Dr Available for Sale Securities $548,184

Cr Cash $548,184

(13%*301,200*$14)

(To purchase 10% of Ramirez Fashion)

30-Jun

Dr Cash $9,113

Cr Dividend Revenue $9,113

(13%$70,100)

(To record a 13% dividend revenue $70,100)

31-Dec

Dr Securities Fair Value Adjustment $39,156

Cr Unrealized Holding Gain $39,156

[($15-$14)*13%*301,200]

(To adjust securities to FMV in an Equity account)

2.1-Jan

Dr Investmeht in Nadal Corp. $81,750

Cr Cash $81,750

(25%*32,700*$10)

(To purchase 25% of Nadal Corp.)

15-Jun

Dr Cash $7,900

Cr Investment in Nadal Corp. $7,900

(25%$31,600)

(To record cash dividend of $31,600)

31-Dec

Dr Investment in Nadal $29,000

Cr Revenue from Investment in Sub $29,000

(25%*$116,000)

(To record 25% revenue of $116,000 from Nada)

7 0
3 years ago
Which of the following best characterizes the factors involved in a cost-benefit analysis?
artcher [175]

Answer:

The option there are both monetary and non-monetary considerations that must be taken into account, is the best option that characterizes the factors involved in a cost-benefit analysis.

please follow je

3 0
3 years ago
Ethical dilemma ethical lapse
makkiz [27]

Answer:

An ethical lapse is a mistake or error in judgement that produces a harmful outcome (Roslyn Frenz, n.d., para. ... Otherwise there are grave consequences for such ethical lapses and could result in widespread harm to the company and to the society at large.

In both situations presented, I believe them to be ethical dilemmas. An ethical dilemma is considered to be a problem between two possibilities that are not acceptable or preferable. Making a choice between the two would result in hurting the other. Employing the child is wrong because of labor laws, but the child is able to provide for themselves because of it. Taking away the employment would make the child homeless and hungry. The second scenario is also a dilemma because you run the risks of loosing profits if you do things the correct way. Neither choice would result in a preferable outcome. Doing the right thing sometimes comes with a price.

Explanation:

Examples of ethical lapses include business-related misconduct such as fraud, bribery, insider trading, and environmental disasters involving negligence or recklessness. They also include personal ethical misconduct, such as inflated résumés and sexual indiscretions.

5 0
3 years ago
Examples of tangible and intangible
Rashid [163]

Answer:  Tangible: <em>cash, inventory, vehicles, equipment, buildings and investments</em>

Intangible:  <em>goodwill, brand recognition, copyrights, patents, trademarks, trade names, and customer lists</em>

<em>Hope this helps </em>

<em>Plz mark brainlest</em>

<em />

5 0
3 years ago
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