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natima [27]
3 years ago
7

BrambleFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cos

t of $8,000,000 on January 1, 2020. Bramble expected to complete the building by December 31, 2020. Bramble has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 $3,200,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 2,240,000 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 1,600,000 (a) Assume that Bramble completed the office and warehouse building on December 31, 2020, as planned at a total cost of $8,320,000, and the weighted-average amount of accumulated expenditures was $5,760,000. Compute the avoidable interest on this project
Business
1 answer:
Ede4ka [16]3 years ago
4 0

Answer:

$650,752

Explanation:

The computation of the avoidable interest is shown below;

But before that following calculations must be done

Interest payable on short term loan

= $2,240,000 ×  10%

= $224,000

Interest payable on long term loan

= $1,600,000 × 11%

= $176,000

Therefore,

Weighted average interest rate is

= ($224,000 + $176,000) ÷ ($2,240,000 + $1,600,000) × 100

= 10.42%

Now

Avoidable interest is

= [$3,200,000 ×  12%] + [($5,760,000 - $3,200,000) × 10.42%]

= $650,752

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Share price = (2.867 / (1 + 12%)) + (‭3.49774‬ / 1.12²) + (‭4.2672428‬ / 1.12³) + (64/1.12³)

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7 0
3 years ago
In the early days of the game industry, nearly all games were developed by designers, for designers. More specifically, what age
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Based on historical perspective, the age range of the early game designers is between <u>40 to 60years old.</u><u> </u>Also, the gender for which the games were being designed is <u>male</u>.

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The history of game designs can be traced to William Higinbotham, a Physicist who created the first video game in 1958 at the age of 48 years.

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Hence, in this case, it is concluded that the game designers were <u>men</u>, and they are in the age range of <u>40 to 60 years</u>.

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2 years ago
Suppose that the total revenue received by a company selling basketballs is $600 when the price is set at $15 per basketball and
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3 years ago
Sarah purchased a stock one year ago at a price of $32 a share. In the past year, she has received four quarterly dividends of $
alexdok [17]

Answer:

$6.

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3 years ago
During the month of March, Munster Company's employees earned wages of $64,000. Withholdings related to these wages were $4,896
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Answer:

A) March 31 journal entries for wages expense and wages payable

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