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zvonat [6]
3 years ago
11

On July 1, 2020, Crocus obtained a $90 million construction loan with a 6% interest rate. The loan was outstanding through the e

nd of October, 2021. The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 8%. This note was outstanding during all of 2020 and 2021. The company's fiscal year-end is December 31. What is the amount of interest that Crocus should capitalize in 2021, using the specific interest method? (Enter your answers to nearest whole dollar amount.)
Business
1 answer:
enyata [817]3 years ago
3 0

Answer:

$4.5

Explanation:

Interest to be capitalized=$90*6%*10/12=$4.5

As the loan was outstanding from January  to October 2021, therefore interest is worked out for 10 months.

Please note that interest of only those debt instruments are capitalized which have been obtained to finance any construction project under the specific interest method.

In our example $90 is the construction loan therefore only this loan's interest is capitalized.

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Answer:

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$1,208 overapplied

Explanation:

a) Data and Calculations:

Estimated manufacturing overhead $361,260

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Overhead applied = Actual machine hours * Predetermined overhead rate

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Overapplied overhead = Overhead applied minus Actual overhead

= $355,908 - $354,700

= $1,208

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1. ______ assist in the movement of goods and services from producers to industrial and consumer users. Exchange providers Finan
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2 years ago
Firms A and B plan to collude in an economy for their similar​ products, which includes the grim strategy for punishment. They p
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Since firm A is impatient to earn more profits and Firm B wishes to last in the business for the​ long-run, then Firm A will reduce the price to​ $7 causing Firm B to reduce its price to​ $4.50.

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3 0
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