Grouper, Inc. has a fiscal year ending April 30. On May 1, 2020, Grouper borrowed $9,912,000 at 11% to finance 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, 2021, weighted-average accumulated expenditures were $3,469,200. Interest earned on the unexpended portion of the loan amounted to $644,280 for the year. How much should be shown as capitalized interest on Grouper's financial statements at April 30, 2021? Capitalized interest on Grouper's financial statements 190806
Grouper, Inc. has a fiscal year ending April 30. On May 1, 2020, Grouper borrowed $9,912,000 at 11% to finance 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, 2021, weighted-average accumulated expenditures were $3,469,200. Interest earned on the unexpended portion of the loan amounted to $644,280 for the year. How much should be shown as capitalized interest on Grouper's financial statements at April 30, 2021? Capitalized interest on Grouper's financial statements 190806
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 61P
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Transcribed Image Text:Grouper, Inc. has a fiscal year ending April 30. On May 1, 2020, Grouper borrowed $9,912,000 at 11% to finance 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, 2021, weighted-average accumulated expenditures were $3,469,200. Interest earned on the unexpended
portion of the loan amounted to $644,280 for the year.
How much should be shown as capitalized interest on Grouper's financial statements at April 30, 2021?
Capitalized interest on Grouper's financial statements
190806
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