Question
In: Accounting
Larkspur Company is constructing a building. Construction began on February 1 and was completed on December...
Larkspur Company is constructing a building. Construction began
on February 1 and was completed on December 31. Expenditures were
$1,920,000 on March 1, $1,200,000 on June 1, and $3,070,300 on
December 31.
Larkspur Company borrowed $1,041,900 on March 1 on a 5-year, 13%
note to help finance construction of the building. In addition, the
company had outstanding all year a 10%, 5-year, $2,227,300 note
payable and an 11%, 4-year, $3,799,000 note payable. Compute
avoidable interest for Larkspur Company. Use the weighted-average
interest rate for interest capitalization purposes
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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Weighted-Average Accumulated Expenditures = $
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Bramble Company is constructing a building. Construction began
on February 1 and was completed on December 31. Expenditures were
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Bramble Company borrowed $2,000,000 on March 1 on a 5-year,
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Riverbed Company is constructing a building. Construction began on February 1 and was completed on December...
Riverbed Company is constructing a building. Construction began
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$5,040,000 on March 1, $3,360,000 on June 1, and $8,400,000 on
December 31.
Riverbed Company borrowed $2,800,000 on March 1 on a 5-year, 12%
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Wildhorse Company is constructing a building. Construction began on February 1 and was completed on December...
Wildhorse Company is constructing a building. Construction began
on February 1 and was completed on December 31. Expenditures were
$1,812,000 on March 1, $1,212,000 on June 1, and $3,007,840 on
December 31.
Wildhorse Company borrowed $1,004,930 on March 1 on a 5-year, 13%
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Pharoah Company is constructing a building. Construction began on February 1 and was completed on December...
Pharoah Company is constructing a building. Construction began
on February 1 and was completed on December 31. Expenditures were
$1,824,000 on March 1, $1,224,000 on June 1, and $3,030,540 on
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Pharoah Company borrowed $1,082,950 on March 1 on a 5-year, 12%
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weighted-average interest rate used for interest...
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Sheridan Company is constructing a building. Construction began
on February 1 and was completed on December 31. Expenditures were
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Wildhorse Company is constructing a building. Construction began on February 1 and was completed on December...
Wildhorse Company is constructing a building. Construction began
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December 31. Wildhorse Company borrowed $1,016,400 on March 1 on a
5-year, 13% note to help finance construction of the building. In
addition, the company had outstanding all year a 9%, 5-year,
$2,206,100 note payable and an 10%, 4-year, $3,702,000 note
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Pina Company is constructing a building. Construction began on
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December 31. Compute Pina’s weighted-average accumulated
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Blossom Company is constructing a building. Construction began on February 1 and was completed on December...
Blossom Company is constructing a building. Construction began
on February 1 and was completed on December 31. Expenditures were
$3,240,000 on March 1, $2,160,000 on June 1, and $5,400,000 on
December 31. Blossom Company borrowed $1,800,000 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 12%, 5-year,
$3,600,000 note payable and an 11%, 4-year, $6,300,000 note
payable. Compute avoidable interest for Blossom Company. Use the...
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