Question
In: Accounting
Dessin Company is constructing a building. Construction began on January 1, 2012 and was completed on...
Dessin Company is constructing a building. Construction began on January 1, 2012 and was completed on December 31, 2012. Expenditures were
|
March 1, 2012 |
$750,000 |
|
June 1, 2012 |
200,000 |
|
September 30, 2012 |
350,000 |
|
October 1, 2012 |
100,000 |
|
December 31, 2012 |
250,000 |
Company borrowed $1,300,000 on January 1 on a 7-year, 11% note to help finance construction of the building. In addition, the company had outstanding all year a 12%, 4-year, $2,800,000 note payable and an 10%, 4-year, $3,400,000 note payable.
1. What were the weighted-average accumulated expenditures for 2012?
2. What is the weighted-average interest rate used for interest capitalization purposes in 2012?
3. What is the avoidable interest for the company in 2012?
4. What is the actual interest for the company in 2012?
5. What is the total amount of the interest capitalized for 2012?
6. What is the total amount of the interest expensed for 2012?
Show your computations!
Solutions
ekkarill92 answered 4 months agoRelated Solutions
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