1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
xxMikexx [17]
2 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]2 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

You might be interested in
Crador Corp. uses a process costing system in which direct materials are added at the beginning of the process and conversion co
klasskru [66]

Answer: 62.5%

Explanation:

Equivalent units = Units completed and transferred out + percentage completed of ending inventory

14,800 = (1,100 + 14,000 - 800) + Percentage

14,800 = 14,300 + Percentage amount completed

Percentage amount completed = 14,800 - 14,300

Percentage amount completed = 500 units

Percentage = Ending equivalent units / ending inventory

= (500/800) * 100

= 62.5%

8 0
2 years ago
Kayleigh is looking over a number of material requisition slips from her employees. She has to sign off on each request after re
dedylja [7]

Answer:

B. No, approval by an individual other than the requestor establishes greater accountability over inventory.

Explanation:

This step is required as it will ensure control over inventory usage.

3 0
3 years ago
Summarise the following passage in on more than 60w words and supply an appropriate title:every second,1 hectare of the world's
Inga [223]

Answer:

I don't know...

Explanation:

I'm sorry...............

7 0
2 years ago
Which of the following types of business ownership has the advantages of pass-through taxation and liability protection? A. A so
nikklg [1K]
Your answer is LLC so it would be B. IM writing this long because i have to 
4 0
3 years ago
Read 2 more answers
Question 26 The Paper Mill is operating at full capacity. Assets, costs, and current liabilities vary directly with sales. The d
Lesechka [4]

Answer:

$2,260

Explanation:

The computation is shown below:

Present sales revenue $42,700

Expected sales revenue ($42,700 × 114 ÷ 100) $48,678

Current profit margin ($5,500 ÷ $42,700 × 100) 12.88%

Payout Ratio:  

Dividends (a) $1,925

Net Income (b) $5,500

Payout Ratio (a ÷ b × 100) 35%

Retention Ratio (100% - 35%) 65%

due to 14% rise in sales Increase in retained earnings  ($48,678 × 12.88 ÷ 100 × 65 ÷ 100) $4,075.32

due to 14% rise in sales, Increase in assets  ([$48,678 - $42,700] × $48,900 ÷ $42,700) $6,846

due to 14% rise in sales, Increase in liabilities  ([$48,678 - $42,700] ×  $3,650 ÷ $42,700) $511

when sales rise by 14% External Financing Needed ($6,846 - $4,075.32 - $511) $2,260        

7 0
2 years ago
Other questions:
  • one theory behind ____ is that the best outcome to civil ______ is a _____ and that parties will move toward agreement if they u
    15·1 answer
  • The _________________ argument points out that if an employer reacts to poor business conditions by reducing pay for all workers
    13·1 answer
  • Outback Steakhouse wants to expand its line of food products. The managers sent surveys to customers to determine which food ite
    12·1 answer
  • A country has been in existence for only two years. In the first​ year, receipts were​ $1.0 million and outlays were​ $1.5 milli
    13·1 answer
  • On January 1, 2020, Pina Corporation sold a building that cost $263,240 and that had accumulated depreciation of $101,140 on the
    10·1 answer
  • your manager asks you to "cook the books" to support a loan application at the local bank. The manager insists it is a one-time
    11·1 answer
  • Discontinue a Segment Product Tango has revenue of $1,150,000, variable cost of goods sold of $850,000, variable selling expense
    11·1 answer
  • Since it was founded in 1994, Amazon has expanded its business from online book sales, to online general retailing, to audio and
    11·1 answer
  • Question 2 Multiple Choice Worth 10 points)
    15·1 answer
  • A supervisor rewards a restaurant employee for cleaning the bathrooms by allowing the employee to stock the salad bar. ______ wo
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!