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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

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Ganezh [65]

Answer:

a. Gerard’s contract is voidable at his option while it is entirely executory.

Explanation:

In the United States of America, one of the most widely used recognized and most cited legal treatises is the Restatement of Contracts. It allows legal luminaries (judges and lawyers) to have a general understanding of non-binding authorities in contract or common law.

According to the Restatement (second) of Contract, voidable contract is one where one or more parties have the power, by a manifestation of election to do so, to avoid the legal relations created by the contract, or by ratification of the contract to extinguish the power of avoidance.

Hence, under the Restatement, Gerard’s contract is voidable at his option while it is entirely executory.

63. In most states, whether the time within which a minor disaffirms a contract constitutes a reasonable time is determined by the fact and circumstance of the case.

5 0
3 years ago
Suppose all stocks in Cheyenne’s portfolio were equally weighted. Which of these stocks would contribute the least market risk t
Finger [1]

Answer:

Least Market Risk - Fitcom Corp. as it has the lowest beta.

Explanation:

According to the given table, as we can see that there are 4 types of stock, 4 investment, 4 beta, and 4 standard deviations. Now, as per the requirement of the question the least market risk to the portfolio of the stock is Fitcom Corp. as it has the lowest beta that is 0.50.

Therefore the right answer is Fitcom Corp.

7 0
3 years ago
Ronald Rawls and Zabian Bailey were in an auto accident in Bridgeport, Connecticut. Bailey rear-ended Rawls at a stoplight. Evid
guapka [62]

Answer:

Yes, Rawls could collect.

Explanation:

It is possible that Rawls collects damages due to negligence. This is due to the fact that the main cause of the accident was not substantiated by the Progressive Northern Insurance Company. The company claimed that the accident could have been caused by a series of events and the company was also not certain about the main cause of the accident.

4 0
3 years ago
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When a company's only potential common shares are convertible bonds:A. Diluted EPS will be greater if the bonds are actually con
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Answer:

Correct answer is (C)

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Diluted EPS will be the same whether or not the bonds are converted.

Earning Per Share EPS

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3 years ago
Star Corp. had the following accounts and balances in its general ledger as of December 31:
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Answer:

=$ 25,500

Explanation:

cash equivalents will be petty cash + cash at bank

= 500+20,000+5000

=$ 25,500

Cash or cash equivalent refers to assets held in the form of cash or can easily convert into cash in less than 90 days. Examples of cash include petty cash, cash in hand, cash in the bank, and debt securities whose maturity is within 90 days. Cash or cash equivalent appears at the top on the list of assets in a balance sheet.

Marketable debt securities are short-term to bond issued by a corporation and held by another company. They are listed as a current asset if they are to be sold within one year to long term investment if they are expected to last longer. Marketable equity securities are capital instruments. They are listed as current assets if they are to be liquidated in one year or long term investment if longer.

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3 years ago
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