Problem 25-4 (IAA) Molave Company had the following outstanding loans during 2020 and 2021. Specific construction loan General loan 3,000,000 25,000,000 10% 12% The entity began the self-construction of a new building on January 1, 209 and the building was completed on June 30, 2021. The following expenditures were made: 4,000,000 5,000,000 3,000,000 6,000,000 January 1, 2020 1, 2020 December 1, 2020 1, 2021 April March Required: 1. Compute the cost of the new building on December 31, 2020 and June 30, 2021. . Compute the interest.expense for 2020 and 2021.

Problem 25-4 (IAA) Molave Company had the following outstanding loans during 2020 and 2021. Specific construction loan General loan 3,000,000 25,000,000 10% 12% The entity began the self-construction of a new building on January 1, 209 and the building was completed on June 30, 2021. The following expenditures were made: 4,000,000 5,000,000 3,000,000 6,000,000 January 1, 2020 1, 2020 December 1, 2020 1, 2021 April March Required: 1. Compute the cost of the new building on December 31, 2020 and June 30, 2021. . Compute the interest.expense for 2020 and 2021.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 40P

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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?
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Molave Company had the following outstanding loans during 2021 and 2022. Specific construction loan – 3,000,000 – 10% General loan – 25,000,000 – 12% The entity began the self-construction of a new building January 1, 2021 and the building was completed on June 30, 2022. The following expenditures were made: January 1, 2021 - 4,000,000 April 1, 2021 - 5,000,000 December 1, 2021 - 3,000,000 March 1, 2021 - 6,000,000 Required: Compute the cost of the new building on December 31, 2021 and June 30, 2022. Compute the interest expense for 2021 and 2022.