- Windsor Furniture Started Construction Of A Combination Office And Warehouse Building For Its Own Estimated 64 140 000 O 1 (25.91 KiB) Viewed 29 times
- Windsor Furniture Started Construction Of A Combination Office And Warehouse Building For Its Own Estimated 64 140 000 O 2 (46.28 KiB) Viewed 29 times
- Windsor Furniture Started Construction Of A Combination Office And Warehouse Building For Its Own Estimated 64 140 000 O 3 (46.28 KiB) Viewed 29 times
urrent Attempt in Progress Windsor Furniture started construction of a combination office and warehouse building for its own use at an estimated cost of €4,140,000 on January 1, 2022. Windsor expected to complete the building by December 31, 2022. Windsor has the following debt obligations outstanding during the construction period. €1,670,000 1,336,000 Construction loan-10% interest, payable semiannually, issued December 31, 2021 Short-term loan-8% Interest, payable monthly, and principal payable at maturity on May 30, 2023 Long-term loan-9% interest, payable on January 1 of each year. Principal payable on January 1, 2026 835,000 (a) Assume that Windsor completed the office and warehouse building on December 31, 2022, as planned at a total cost of 64,342.000. The following expenditures were made during the period forthis project: January 1, €835,000: April 1, €1235,000; July 1, 61,635,000; and October 1.6560,000. Excess funds from the construction loans were invested during the period and earned €17.400 of Investment income Compute the amount of borrowing costs to be capitalized for this project. (Use interest rates rounded to 2 decimal places, es 7.58% for computational purposes and round final answers to decimal places, c.9. 5,275.) Borrowing costs