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On January 1, 2021, the Shagri Company began construction on a new manufacturing facility for its own use. The building
Posted: Sun Jul 03, 2022 1:08 pm
by answerhappygod
- On January 1 2021 The Shagri Company Began Construction On A New Manufacturing Facility For Its Own Use The Building 1 (71.82 KiB) Viewed 10 times
On January 1, 2021, the Shagri
Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The only interest-bearing debt the
company had outstanding during 2021 was long-term bonds with a book value of $10,000,000 and an effective interest rate of 8%. Construction expenditures incurred during 2021 were as follows: January 1 March 1 July 31 September 30 December 31 Required: Calculate the amount of interest capitalized for 2021. January 1 March 1 $ 500,000 600,000 480,000 600,000 300,000 Date July 31 September 30 December 31 Accumulated expenditure Average accumulated expenditures Expenditure Amount X X X X X X Weight Interest Rate % = = = = = Average Capitalized Interest