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xxMikexx [17]
3 years ago
12

On January 1, 2021, the Shagri Company began construction on a new manufacturing facility for its own use. The building was comp

leted in 2022. The only interest-bearing debt the company had outstanding during 2021 was long-term bonds with a book value of $11,200,000 and an effective interest rate of 10%. Construction expenditures incurred during 2021 were as follows: January 1 $ 620,000 March 1 672,000 July 31 552,000 September 30 720,000 December 31 420,000 Required: Calculate the amount of interest capitalized for 2021.
Business
1 answer:
Alona [7]3 years ago
4 0

Answer: $159,000

Explanation:

First find out the accumulated expenditure.

You do this by adding up the expenditures of the different months. These expenditures will be weighted by the number of months they were incurred for the year:

= (620,000 * 12/12 months) + (672,000 * 10/12) + (552,000 * 5/12) + (720,000 * 3/12) + (420,000 * 0/12)

= $1,590,000

Amount of interest capitalized = Accumulated expenditure * interest rate

= 1,590,000 * 10%

= $159,000

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JBC Corporation is owned 20 percent by John, 30 percent by Brian, 30 percent by Charlie, and 20 percent by Z Corporation. Z Corp
USPshnik [31]

Answer:

Part (a)  

The percentage ownership of Mr. John is 20% + (80% x 20%) = 36%

Part (b)

The percentage ownership of Mr. Brian is 30% + 30% = 60%

Part (c)

The percentage ownership of Mr. Charlie is 30% + 30% = 60%

Part (d)

The amount that could be recognized for the purposes of tax would be $0, as Mr. Brian owns more than half that is more than 50% of XYZ Corp. either directly or indirectly.

4 0
3 years ago
At ABC Services, Inc., all employees share a common set of beliefs and values that influence their behavior. This refers to orga
pogonyaev

Answer:

Organizational Culture

Explanation:

Organizational Culture -

It refers to the beliefs , expectation , values , experiences offered or required by an organisation , is referred to as organizational culture .

Having common customs , beliefs and working culture , makes the working life of the employees easy and convenient in the organisation .

Hence , a good and proper organizational culture is very important to have a good organization .

Hence , from the given scenario of the question ,

The correct answer is Organizational Culture .

7 0
3 years ago
Harrison Ford Company has been approached by a new customer with an offer to purchase 10,000 units of its model IJ4 at a price o
pychu [463]

Answer:

If the offer is accepted, the income will decrease in $7,500.

Explanation:

Giving the following information:

Harrison Ford Company has been approached by a new customer with an offer to purchase 10,000 units of its model IJ4 for $5 each.

Unitary variable cost:

Direct Materials= $1.75

Direct Labor= $2.50

Variable Overhead= $1.50

1) Because it is a special offer and there is unused capacity, we will not have into account the fixed costs.

Accepting the offer:

Relevant cost= Unitary variable cost

Relevant cost= 1.75 + 2.5 + 1.50= $5.75

Relevant benefits= $5

2) Effect on income= 10,000*5 - 10,000*5.75= -$7,500

If the offer is accepted, the income will decrease in $7,500.

3 0
3 years ago
1. Contrast traditional economies, command economies, and economies.
Dima020 [189]

Answer:

1. A traditional economy is a system that relies on customs, history, and time-honored beliefs.2 A market economy is a system where the laws of supply and demand direct the production of goods and services. A command economy is where a central government makes all economic decisions.

2. Gross domestic product (GDP) is the monetary value of all finished goods and services made within a country during a specific period. GDP provides an economic snapshot of a country, used to estimate the size of an economy and growth rate. GDP can be calculated in three ways, using expenditures, production, or incomes.

3. Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.

4 0
3 years ago
Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $1.25 at the end of the year. Its div
tino4ka555 [31]

Answer:

The expected/required rate of return is 13.8125%.

Explanation:

The stock is a constant growth stock as the dividends are expected to grow constantly forever. The constant dividend growth model of DDM is used to calculate the price of such a stock today. As we already know the price, we will use the formula of the constant growth model to determine the required rate of return. The formula for constant growth model is:

P0 or Price today = D1  /  r - g

Plugging in the available known values,

16  =  1.25  /  (r - 0.06)

16 * (r - 0.06)  =  1.25

16r  -  0.96  =  1.25

16r = 1.25 + 0.96

r = 2.21 / 16

r = 0.138125  or  13.8125%

3 0
3 years ago
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