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Elodia [21]
3 years ago
8

Cullumber Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures we

re $2,052,000 on March 1, $1,200,000 on June 1, and $3,072,650 on December 31. Compute Cullumber weighted-average accumulated expenditures for interest capitalization purposes.
Business
1 answer:
dimulka [17.4K]3 years ago
8 0

Answer: $2,410,000

Explanation:

Date: March 1st

Expenditure: $2,052,000

Capitalization period: 10/12 months

Weighted Average Accumulated Expenditure: $1,710,000

Date: June 1st

Expenditure: $1,200,000

Capitalization period: 7/12 months

Weighted Average Accumulated Expenditure: $700,000

Date: December 31st

Expenditure: $3,072,650

Capitalization period: 0

Weighted Average Accumulated Expenditure: $0

The Weighted Average Accumulated Expenditure will now be:

= $1,710,000 + $700,000 + $0

= $2,410,000

Note that Weighted Average Accumulated Expenditure for each date was gotten as:

= Expenditure × Capitalization period

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Suppose the mean gpa of all students graduating from a particular university in 1975 was 2.30. the registrar plans to look at re
coldgirl [10]
My notation would be myx = M(XC+%) and the mean is Summat.
4 0
3 years ago
Jaheem's business sells a single product. The following information was gathered from Jaheem's records: Price $24.00 per unit Va
pochemuha

Answer:

See below

Explanation:

With regards to the above, Jaheem's business profit increase is calculated as

= Fixed cost + Desired profit/Contribution margin

Given that;

Fixed cost = $400,000

Desire profit = $22,000

Contribution margin = $9.4

= $400,000 + $22,000/($24 - $14.6)

= $422,000/$9.4

= $44,894

Therefore, increase on profit

= $44,894 - $22,000

= $22,894

6 0
2 years ago
Generally accepted accounting principles require that companies use the ____ of accounting.
White raven [17]

Answer:accrual basis

Explanation: the need the truth on the accounting princess so it has to be to accrual basis

3 0
2 years ago
YellowCard Company manufactures accessories for iPods. It had the following selected transactions during 2017. (Note: For any pa
jarptica [38.1K]

Answer:

warrant expense 51,000 debit

          cash                       6,000 credit

          warranty liability 45,000 credit

--to record warrant-related accounts--

interest payable 16,667 debit

interest expense  3,333 debit

          cash                  20,000 credit

--to record interest expense for the loan and installment--

Manufacturing Facilities 5,192,772  debit

              Cash                    5,000,000 credit

              Restoration Liability 192,772 credit

-- to record the payment to contractor--

Explanation:

Warranty: the additional expected expense are considered warranty laibility

Loan: we previously recorded accrued interest from March 1st to Dec 31th

That is: 200,000 x 10% x 10/12 months = 16,667 payable

At February 28th we recognize the last two month of interest

200,000 x 10% x 2/12 months = 3,333 expense

in total we have 16,667 + 3,333 = 20,000 cash outlay

Facility: the asset should add to all the cost necessary to acquire it:

As the conversion into community center is mandatory it is part of the cost:

present value of the 500,000 in ten years:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $500,000.00

time  10.00

rate  0.10000

\frac{500000}{(1 + 0.1)^{10} } = PV  

PV   192,771.6447

Total cost:

5,000,000 cashg + 192,772 liability = 5,192,772

4 0
3 years ago
Tanuja Singh is a CPA and operates her own accounting firm (Singh CPA, LLC). As a single-member LLC, she reports her accounting
AnnyKZ [126]

Answer:

Tanuja is not entitled to a QBI deduction in 2019.

Explanation:

Tanuja has QBI from her accounting firm of $540,000

W-2 wages = $156,000

Unadjusted basis of property used in the LLC = $425,000

Taxable income before the QBI deduction = $475,000

Modified taxable income = $448,000.

Her accounting firm is a "specified services" business and she and her spouse's taxable income before the QBI deduction is $475,000, which exceeds the threshold for 2019.

6 0
3 years ago
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