Research and development costs of $630,000 were incurred during the current fiscal year. Determine the minimum amount to be expensed for the current fiscal year. Minimum amount to be expensed for the current fiscal year $
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- On April 1, Paine Co. began construction of a small building. Payments of P120,000 were made monthly for four months beginning on April 1. The building was completed and ready for occupancy on August 1. For the purpose of determining the amount of interest cost to be capitalized, calculate the weighted-average accumulated expenditures on the building by completing the schedule below: Date Expenditures Capitalization Period Weighted-Average Expenditures _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____Hanson Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,800,000 on March 1, $1,200,000 on June 1, and $3,000,000 on December 31. Compute Hanson’s weighted-average accumulated expenditures for interest capitalization purposes.On March 1, Imhoff Co. began construction of a small building. Payments of $800,000 were made monthly for three months beginning March 1. The building was completed and ready for occupancy on June 1. In determining the amount of interest cost to be capitalized, the weighted-average accumulated expenditures are
- A company began constructing a new warehouse for its operations during the current year. In the year the company incurred interest of $20,000 on a working capital loan, and interest on a construction loan for the warehouse of $80,000. Interest computed on the average accumulated expenditures for the warehouse construction was $40,000. What amount of interest should be expensed for the year?The following amounts were spent on development expenses relating to a new product. Assume the capitalization criteria was met on 1 September 20X3, when financing for the project was secured. Assume all costs were incurred evenly over the period, unless otherwise noted. Description Amount Product development costs (January – August) $ 98,000 Product development costs (September - December) $ 66,000 Employee salaries for development team (January - December) $ 120,000 Brand awareness, and advertising expenses $ 7,900 Interest on loans to finance development (October - December) $ 12,500 Required: Prepare the journal entries to record the above costs.On March 1, Wenger Co. began construction of a small building. Payments of$120,000 were made monthly for three months beginning March 1. The buildingwas completed and ready for occupancy on June 1. In determining the amount ofinterest cost to be capitalized, the weighted-average accumulated expenditures area. $30,000.b. $60,000c. $120,000.d. $240,000.
- Shamrock Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,028,000 on March 1, $1,308,000 on June 1, and $3,003,740 on December 31. Compute Shamrock’s weighted-average accumulated expenditures for interest capitalization purposes.Bonita Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,896,000 on March 1, $1,296,000 on June 1, and $3,025,000 on December 31. Bonita Company borrowed $1,089,000 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $2,327,000 note payable and an 11%, 4-year, $3,795,000 note payable. Compute avoidable interest for Bonita Company. Use the weighted-average interest rate for interest capitalization purposes. (Round weighted- average interest rate to 4 decimal places, e.g. 0.2152 and final answer to O decimal places, e.g. 5,275.) Avoidable interest $ Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.As during eighth year, Clark Company spent $2,400,000 on equipment for its own use. The project took a whole year to complete, and all expenditures were spread out evenly over the year. Clark was able to borrow $1,500,000 at 6% interest at the start of the term for the procurement of materials and the fabrication of the equipment. On December 31, year 8, the whole debt, including interest, was redeemed and replaced with a long-term loan. Clark Company has an extra debt of $1,000,000 in year 8, with a weighted average interest rate of 7%. What will Clark Corporation report as interest cost in year 8 if it capitalises the maximum amount of interest allowed under GAAP? Asap
- As during eighth year, Clark Company spent $2,400,000 on equipment for its own use. The project took a whole year to complete, and all expenditures were spread out evenly over the year. Clark was able to borrow $1,500,000 at 6% interest at the start of the term for the procurement of materials and the fabrication of the equipment. On December 31, year 8, the whole debt, including interest, was redeemed and replaced with a long-term loan. Clark Company has an extra debt of $1,000,000 in year 8, with a weighted average interest rate of 7%. What will Clark Corporation report as interest cost in year 8 if it capitalises the maximum amount of interest allowed under GAAP?Buffalo Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,052,000 on March 1, $1,200,000 on June 1, and $3,072,650 on December 31. Compute Buffalo’s weighted-average accumulated expenditures for interest capitalization purposes. Weighted-Average Accumulated ExpendituresRiverbed Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,620,000 on March 1, $1,080,000 on June 1, and $2,700,000 on December 31.Riverbed Company borrowed $900,000 on March 1 on a 5-year, 10% note to help finance construction of the building. In addition, the company had outstanding all year a 12%, 5-year, $1,800,000 note payable and an 11%, 4-year, $3,150,000 note payable. Compute avoidable interest for Riverbed Company. Use the weighted-average interest rate for interest capitalization purposes. (Round "Weighted-average interest rate" to 4 decimal places, e.g. 0.2152 and final answer to 0 decimal places, e.g. 5,275.)