Average accumulated expenditures Ending balance in construction in progress before capitalization of interest 7% note incurred specifically for the project 12% long term note 4,500,000 5,400,000 2,400,000 6,000,000
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Jacob Company started construction on a building on January 1, 2020 and completed construction on December 31, 2020. Jacob had only two interest notes outstanding during the year and both of these notes were outstanding for all 12 months of 2020. The following information is available:
What is the cost of the building on December 31, 2020?
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- 14. What is the Construction in Progress, net of Progress Billings at December 31, 2021, using zero profit method? 250,000 liability 250,000 asset 240,000 asset 240,000 liability Any other amountQ) Determine the capitalized cost at 12% interest of a structure with an initial cost of $300,000 and annual operating and maintenance costs of $45,000, commencing 3 years after the construction of the structure. Not use excelOn jan 1, 20x1 entity A had the following general borrowings. A part of the proceeds was used to finance the construction of qualifying assers. 12% bank loan(1.5 years) Principal=1,000,000 10% bank loan(3 years) Principal=8,000,000 Expenditures made on the qualifying asset were as folloes: Jan 1 5,000,000 March 1 4,000,000 Aug 31 3,000,000 Dec 1 2,000,000 Construction was completed on Dec 31, 20x1 Compute for the average expenditure. please show the solution
- 29. Analyzing Fixed Assets Pitt reported the following information for 2021 and 2022: 2021 2022 Property, plant, and equipment, cost $550,000 $ 550,000 Accumulated depreciation 170,000 220,000 Net sales 4,600,000 Depreciation expense 50,000 Required: Compute Pitt's tangible capital asset turnover ratio and the average age of tangible depreciable capital assets. Round "Tangible Capital Asset Turnover" to two decimal places and "Average Age of Tangible Depreciable Capital Asset" to one decimal place.Q10.9 During 2020, Sunland Company incurred weighted-average accumulated expenditures of $1570000 during construction of assets that qualified for capitalization of interest. The only debt outstanding during 2020 was a $2040000, 9%, 5-year note payable dated January 1, 2020. What is the amount of interest that should be capitalized by Sunland during 2020? $0. $42300. $183600. $141300.6. ABC Company had the following outstanding loans during 20X1 and 20X2.10% Specific construction loans - 3, 000, 00012% General Loans - 25, 000, 000The company began the self-construction of a new building on January 1, 20X1 and the building was completed on June 30, 20X2, the following expenditures were made in 20X1 and 20X2:January 1, 20X1 - 4, 000, 000April 1, 20X1 - 5, 000, 000December 1, 20X1 - 3, 000, 000March 1, 20X2 - 6, 000, 000What is the cost of the new building on June 30, 20X2?
- 55. ABC Company had the following outstanding loans during 20X1 and 20X2. 10% Specific construction loans - 3, 000, 000 12% General Loans - 25, 000, 000 The company began the self-construction of a new building on January 1, 20X1, and the building was completed on June 30, 20X2, the following expenditures were made in 20X1 and 20X2: January 1, 20X1 - 4, 000, 000 April 1, 20X1 - 5, 000, 000 December 1, 20X1 - 3, 000, 000 March 1, 20X2 - 6, 000, 000 What is the cost of the new building on June 30, 20X2?E10-18 Calculating Capitalized Interest Kit Company borrows $6 million at 12% on January 1, 2019, specifically for the purpose of financing the construction of a building that is expected to take 18 months to complete. Kit invests the total amount at 11% until it makes payments for the construction project. During the first year of construction, Kit incurs the following expenditures related to this construction project: January 1 $1,000,000 April 1 $1,600,000 October 1 $1,200,000 December 31 $500,000 Required: 1. Compute the amount of interest expense Kit would capitalize related to the construction of the building. 2. Compute the amount of interest revenue Kit would recognize. 3. Assume that Kit uses IFRS. What amount of interest would be capitalized related to the construction of the building?9. How much should be the balance of the accumulated depreciation for these machineries on December 31, 2021? a. ₱ 7,040,000 b. ₱ 5,840,000 c. ₱ 6,160,000 d. ₱ 6,400,000
- Fair value of plan assets 6,000,000 9,000,000Projected benefit obligation 4,500,000 5,000,000Prepaid/accrued benefit cost – surplus 1,500,000 4,000,000Asset ceiling 1,000,000 2,500,000Effect of asset ceiling 500,000 1,500,000During the year, the entity recognized current service cost P2,000,000, actual return on plan assets P400,000,and contribution to the plan P4,550,000 and benefits paid P1,950,000. The discount rate is 10%REQUIRED:6. Compute the employee benefit expense for the current year7. Compute the net remeasurement loss for the current year8. Compute the defined benefit cost9. Compute the amount of prepaid benefit cost that should be reported on December 31ABC begins the construction of a building on 1 January 20X1. The following expenditures on this property incurred during the year 20X1: (Unit: CU 1000)1 January 20X1 – 100,0001 June 20X1 – 300,0001 October 20X1 – 600,000On 1 January 20X1, Entity A had 500,000 of general borrowings which increased by 1 million to 1.5 million in total on 1 June 20X1. Interest expense on these borrowings calculated to 50,000 for full-year 20X1.Calculate the amount relating to borrowing cost that should be capitalized in the cost of the building?10. An entity had the following loans outstanding during 20X1 and 20X2.Specific construction loan, 2,000,000 - 15%General loan, 15,000,000 - 12%The entity began the self-construction of a new building on January 1, 20X1 and the building was completed on December 31, 20X2. The following expenditures were made during 20X1 and 20X2: January 1, 20X1 - 2,000,000; July 1, 20X1 - 4,000,000; November 1, 20X1 - 3,000,000; July 1, 20X2 - 1,000,000. What is the cost of the building?