Zookal
Zookal

We’d love to hear any feedback or comment from you!

© 2011-2021 Zookal Pty Ltd

View question and answer

From our collection of questions and answers
Business · Accounting
Question details

Situation I On January 1, 2017, Tamarisk, Inc signed a fixed-price contract to have Builder Associates construct a major plant facility at a cost of $4,215,000. It was estimated that it would take 3 years to complete the project, Also on January 1, 2017, to finance the construction cost Tamarisk borrowed $4,215,000 payable in 10 annual stallments of $421,500, plus interest at the rate of 10%. Dunng 2017 Tar ansk made deposit and progress payments totaling $1,580,625 under the contract; the weighted-average amount of accumulated expenditures was $843,000 for the year, The excess borrowed funds were invested in short-term securities, from which Tamarisk realized investment income of $256,400 What amount should Tamarisk report as capitalized interest at December 31, 2017? Capitalized interest Situation II During 2017, Vaughn Corporation constructed and manufactured certain assets and incurred the following interest costs in connection with those activities Interest Costs Incurred Warchouse constructed for Vaughns own use Special-order machine for sale to unrelated customer, produced according $31,800 8,330 8,750 to customers specifications Inventories routinely manufactured, produced on a repetitive basis All of these assets required an extended period of time for completion. Assuming the effect of interest capitalization is material, what is the total amount of interest costs to be capitalized? The total amount of interest costs to be capitalized Situation III Bramble, Inc. has a fiscal year ending April 30 n May 1 2017 Bramble borrowed $9,898,000 at 11% to fir ance construction of its own building. Repayments of the loan are to commence the month following completion of the building. During the year ended April 30, 2018 expenditures for the Partially completed structure totaled宰6,928 600 These expenditures were incurred evenly throughout the year. Interest earned on the unexpended portion of the loan amounted to $643 370 for the year How much should be shown as capitalized interest on Brambles financial statements at April 30, 2018 Capitalized interest on Brambles financial statements

Answer
Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.

Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.Find step-by-step answers from expert tutors to questions asked by students like you. Start 14-day free trial.