View Policies Current Attempt in Progress On December 31, 2024, Blue Inc. borrowed $4,320,000 at 13% payable annually to finance the construction of a new building. In 2025, the company made the following expenditures related to this building: March 1, $518,400; June 1, $864,000; July 1, $2,160,000; December 1, $2,160,000. The building was completed in February 2026. Additional information is provided as follows. 1. 2. 3. (a) Other debt outstanding: 10-year, 14% bond, December 31, 2018, interest payable annually 6-year, 11% note, dated December 31, 2022, interest payable annually March 1, 2025, expenditure included land costs of $216,000. Interest revenue of $70,560 earned in 2025. The amount of interest Determine the amount of interest to be capitalized in 2025 in relation to the construction of the building. eTextbook and Media List of Accounts $5,760,000 $ 2,304,000
View Policies Current Attempt in Progress On December 31, 2024, Blue Inc. borrowed $4,320,000 at 13% payable annually to finance the construction of a new building. In 2025, the company made the following expenditures related to this building: March 1, $518,400; June 1, $864,000; July 1, $2,160,000; December 1, $2,160,000. The building was completed in February 2026. Additional information is provided as follows. 1. 2. 3. (a) Other debt outstanding: 10-year, 14% bond, December 31, 2018, interest payable annually 6-year, 11% note, dated December 31, 2022, interest payable annually March 1, 2025, expenditure included land costs of $216,000. Interest revenue of $70,560 earned in 2025. The amount of interest Determine the amount of interest to be capitalized in 2025 in relation to the construction of the building. eTextbook and Media List of Accounts $5,760,000 $ 2,304,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 18E
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