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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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Manufacturing cycle time is best defined as the: length of the work shift, expressed in minutes per day. time it takes a unit to
luda_lava [24]

Answer:

time from raw materials receipt to finished product exit.

Explanation:

Manufacturing cycle time is best defined as the "time from raw materials receipt to finished product exit."

To explain better, manufacturing cycle time is the overall time of process that covers the total duration it takes the final production of commodities to be made. That is beginning from the inception stage which is usually raw materials through its conversion stage and eventually into finished goods.

5 0
3 years ago
Your company is evaluating four locations in Asia for its new customer center; according to the information provided in the tabl
tamaranim1 [39]

Answer:

1. B. Country A

2. E. Singapore and Singapore

Explanation:

1. Country A

= (0.5  * 95) + (0.3 * 90) + ( 0.2 * 80) + (0.1 + 70)

= 45 + 27 + 16 + 7

= 95

Country B

= (0.5  * 60) + (0.3 * 70) + ( 0.2 * 80) + (0.1 + 80)

= 30 + 21 + 16 + 8

= 75

Country C

= (0.5  * 50) + (0.3 * 50) + ( 0.2 * 70) + (0.1 + 40)

= 25 + 15 + 14 + 4

= 58

Country D

= (0.5  * 35) + (0.3 * 35) + ( 0.2 * 60) + (0.1 + 40)

=17.5 + 10.5 + 12 + 4

= 44

2.

Taiwan

= (0.15*85 + 0.15*85 + 0.2*70 + 0.1*85 + 0.4*30)

= (12.75 + 12.75 + 14 + 8.5 + 12)

= 60

Thailand

= (0.15*95 + 0.15*20 + 0.2*65 + 0.1*50 + 0.4*70)

= (14.25 + 3 + 13 + 5 + 28)

= 63.25

Singapore

= (0.15*40 + 0.15*95 + 0.2*75 + 0.1*85 + 0.4*70)

= (6 + 14.25 + 15 + 8.5 + 28)

= 71.75

First Recommendation - <u><em>Singapore</em></u>

Thailand political risk falls to 30.

=  (0.15*95 + 0.15*20 + 0.2*65 + 0.1*50 + 0.4*30)

= (14.25 + 3 + 13 + 5 + 12)

= 47.25

Second Recommendation - <em><u>Singapore</u></em>

3 0
3 years ago
Channeling funds from individuals with surplus funds to those desiring funds when the saver does not purchase the borrower's sec
Solnce55 [7]

Answer: Financial Intermediation.

Explanation:

Financial Intermediation is a method of wealth distribution common to Banks, where money deposited by it's customers is given out as loan to investors/individuals. The Banks are known as Financial Intermediaries as they are actively involved in wealth distribution.

6 0
3 years ago
The following cash transactions occurred during the period. INTEREST RECEIVED IN CASH $18,000
nikklg [1K]

Answer:

OPERATING ACTIVITIES

SOURCES: INTEREST RECEIVED IN CASH $18,000, the company receives money

(USES:) PAYMENT OF WAGES TO EMPLOYEES $35,000, the company pays wages

INVESTING ACTIVITIES

SOURCES: NONE

(USES:) PURCHASE OF A PIECE OF EQUIPMENT FOR CASH $120,000  , the company pays for the equipment

FINANCING ACTIVITIES

SOURCES: NONE

(USES:) DISTRIBUTION OF CASH DIVIDEND DECLARED LAST YEAR $25,000, the company pays dividends

5 0
3 years ago
It is one of Garrett’s job responsibilities to report the amount of foreign direct investment undertaken by the government over
Eddi Din [679]

Answer: flow

Explanation:

Foreign direct investment flows records the value of foreign transaction with investment carried out at a particular period of time, probably quarterly, annually.

This flow consists of reinvestment earnings, equity transactions, and company debt transaction.

Inward and outward flows are also been taken into consideration, how foreign investments/transaction are noted in and out of the organization.

5 0
3 years ago
Read 2 more answers
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