On January 2, 2018, Indian River Groves began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2019. Expenditures for the construction were as follows: January 2, 2018 £200,000 September 1, 2018 600,000 December 31, 2018 600,000 March 31, 2019 600,000 September 30, 2019 400,000 Indian River Groves borrowed £1,100,000 on a construction loan at 12% interest on January 2, 2018. This loan was outstanding during the construction period. The company also had £4,000,000 in 9% bonds outstanding in 2018 and 2019. What were the weighted-average accumulated expenditures for 2018?
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- On January 2, 2020, Sheridan Company began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows: January 2, 2020 $ 594000 September 1, 2020 1806000 December 31, 2020 1806000 March 31, 2021 1806000 September 30, 2021 1193000 Sheridan Company borrowed $3320000 on a construction loan at 10% interest on January 2, 2020. This loan was outstanding during the construction period. The company also had $12960000 in 7% bonds outstanding in 2020 and 2021.What were the weighted-average accumulated expenditures for 2021 by the end of the construction period? a $4325600 b $5953200 c $4147200 d $903000On January 2, 2020, Sheridan Company began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows: January 2, 2020 $ 594000 September 1, 2020 1806000 December 31, 2020 1806000 March 31, 2021 1806000 September 30, 2021 1193000 Sheridan Company borrowed $3320000 on a construction loan at 10% interest on January 2, 2020. This loan was outstanding during the construction period. The company also had $12960000 in 7% bonds outstanding in 2020 and 2021.What were the weighted-average accumulated expenditures for 2021 by the end of the construction period?On January 1, 2024, a company began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2025. Expenditures on the project were as follows: January 1, 2024 $ 248,000 September 1, 2024 $ 336,000 December 31, 2024 $ 336,000 March 31, 2025 $ 336,000 September 30, 2025 $ 248,000 The company borrowed $762,000 on a construction loan at 12% interest on January 1, 2024. This loan was outstanding throughout the construction period. The company had $4,560,000 in 12% bonds payable outstanding in 2024 and 2025. Interest (using the specific interest method) capitalized for 2025 was: Multiple Choice $106,848. $124,668. $68,580. $107,918.
- On January 1, 2024, a company began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2025. Expenditures on the project were as follows: January 1, 2024 $ 200,000 September 1, 2024 $ 300,000 December 31, 2024 $ 300,000 March 31, 2025 $ 300,000 September 30, 2025 $ 200,000 The company borrowed $750,000 on a construction loan at 12% interest on January 1, 2024. This loan was outstanding throughout the construction period. The company had $4,500,000 in 9% bonds payable outstanding in 2024 and 2025. Interest (using the specific interest method) capitalized for 2025 was: $86,805. $87,875. $67,500. $104,625. PLEASE DO NOT GIVE SOLUTION IN IMAGE FORMATOn January 1, 2021, Kendall Inc. began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $ 235,000 September 1, 2021 $ 342,000 December 31, 2021 $ 342,000 March 31, 2022 $ 342,000 September 30, 2022 $ 235,000 Kendall borrowed $764,000 on a construction loan at 7% interest on January 1, 2021. This loan was outstanding throughout the construction period. The company had $4,570,000 in 7% bonds payable outstanding in 2021 and 2022.Average accumulated expenditures for 2021 was: Multiple Choice $349,000. $399,000. $577,000. $470,000.Calculate the following: The first year of depreciation on a residential rental building costing $250,000 purchased June 2,2019. $_____________ The second year (2020) of depreciation on a computer costing $5,000 purchased in May 2019, using the half-year convention and accelerated depreciation considering any bonus depreciation taken. $______________ The first year of depreciation on a computer costing $2,800 purchased in May 2019, using the half-year convention and straight-line depreciation with no bonus depreciation. $______________ The third year of depreciation on business furniture costing $10,000 purchased in March 2017, using the half-year convention and accelerated depreciation but no bonus depreciation. $______________
- On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as itsoffice headquarters. The building was completed on September 30, 2019. Expenditures on the project were asfollows:January 1, 2018 $1,000,000March 1, 2018 600,000June 30, 2018 800,000October 1, 2018 600,000January 31, 2019 270,000April 30, 2019 585,000August 31, 2019 900,000On January 1, 2018, the company obtained a $3 million construction loan with a 10% interest rate. The loanwas outstanding all of 2018 and 2019. The company’s other interest-bearing debt included two long-termnotes of $4,000,000 and $6,000,000 with interest rates of 6% and 8%, respectively. Both notes were outstanding during all of 2018 and 2019. Interest is paid annually on all debt. The company’s fiscal year-end isDecember 31.Required:1. Calculate the amount of interest that Mason should capitalize in 2018 and 2019 using the specific interestmethod.2. What is the total cost of the building?3. Calculate the amount of…On January 1, 2021, Kendall Inc. began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $ 266,000 September 1, 2021 $ 345,000 December 31, 2021 $ 345,000 March 31, 2022 $ 345,000 September 30, 2022 $ 266,000 Kendall borrowed $670,000 on a construction loan at 9% interest on January 1, 2021. This loan was outstanding throughout the construction period. The company had $3,850,000 in 8% bonds payable outstanding in 2021 and 2022.What was the interest (using the specific interest method) capitalized for 2022?In 2019, eGames spent $8,000,000 developing new software. Of this amount,$5,300,000 was spent before July 2019—when technological feasibility was established. The product was marketedto consumers beginning in September 2019. eGames estimates total revenue of $20,000,000 to be earnedduring the software’s three-year life (calculated from the September 1 product release date). During 2019, revenueof $10,000,000 was recognized.Required:1. Prepare the 2019 journal entries to record the development costs.2. Compute the amount of amortization to be recognized in 2019 and prepare the appropriate journal entry, ifany.3. Next Level What is the justification for treating software development costs differently from R&D costs?
- Required information [The following information applies to the questions displayed below.] Three different companies each purchased trucks on January 1, 2018, for $62,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $2,000. All three trucks were driven 75,000 miles in 2018, 60,000 miles in 2019, 50,000 miles in 2020, and 70,000 miles in 2021. Each of the three companies earned $51,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation. Answer each of the following questions. Ignore the effects of income taxes. Required a-1. Calculate the net income for 2018? (Round "Per Unit Cost" to 3 decimal places.) a-2. Which company will report the highest amount of net income for 2018? multiple choice Company A Company B Company C All of the choicesOn january 2 2021 brand company received a grant of P60,000,000 to compensate it for costs it incurred i planting trees over a period of five years. Brand company will incur such cost in this manner: 2021 2,000,000 2022 4,000,000 2023 6,000,000 2024 8,000,000 2025 10,000,000 actual costs incurred in the planting trees showed 2,000,000 and 4,000,000 in years 2021 and 2022, respectively. However in 2023 and 2024 the company has stopped planting trees. Due to the non fulfillment of its obligation, the government is demanding an immediate repayment of the grant in the amount of 50,000,000 which is considered reasonable. What is the grant income for the year 2021?Stag, a public limited company, is preparing its financial statements for the year ending 31 December 2021. The exhibits contain information relevant to the question Exhibit 2 – Research and Development Stag plc started a project on 1 January 2021. The initial costs of setting up the project incurred before 2021 were £2 million. From 1 January 2021 to 31 March 2021 ongoing project costs were £15,000 per month. On 1 April 2021, the project was considered to be technically feasible and commercially viable and from this date, project costs increased to £65,000 per month. From 1 July 2021 to 30 August 2021, additional £1.5 million was spent for the design and construction of a pilot for the project. This pilot is not capable of operating on a scale economically feasible for commercial production. From 1 September 2021 to 31 December 2021, additional £350,000 were also spent for testing of the pilot. Between 1 April 2021 and 31 December 2021, Stag spent £140,000 on research staff, £50,000…