During 2020, Glass Corporation constructed assets costing $1,000,000. The weighted- average accumulated expenditures on these assets during 2020 was $600,000. To help pay for construction, $440,000 was borrowed at 10% on January 1, 2020, and funds not needed for construction were temporarily invested in short-term securities, yielding $9,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a $500,000, 10-year, 9% note payable dated January 1, 2009. The amount of interest that should be capitalized by Glass during 2020 is $
During 2020, Glass Corporation constructed assets costing $1,000,000. The weighted- average accumulated expenditures on these assets during 2020 was $600,000. To help pay for construction, $440,000 was borrowed at 10% on January 1, 2020, and funds not needed for construction were temporarily invested in short-term securities, yielding $9,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a $500,000, 10-year, 9% note payable dated January 1, 2009. The amount of interest that should be capitalized by Glass during 2020 is $
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter16: Financial Planning And Forecasting
Section: Chapter Questions
Problem 8P: LONG-TERM FINANCING NEEDED At year-end 2019, total assets for Arrington Inc. were 1.8 million and...
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