![kaliemn7oyqxuy](/avatars/33834.jpg)
kaliemn7oyqxuy
15.07.2019 •
Business
Early in its fiscal year ending december 31, 2016, san antonio outfitters finalized plans to expand operations. the first stage was completed on march 28 with the purchase of a tract of land on the outskirts of the city. the land and existing building were purchased for $800,000. san antonio paid $200,000 and signed a noninterest-bearing note requiring the company to pay the remaining $600,000 on march 28, 2018. an interest rate of 8% properly reflects the time value of money for this type of loan agreement. title search, insurance, and other closing costs totaling $20,000 were paid at closing. during april, the old building was demolished at a cost of $70,000, and an additional $50,000 was paid to clear and grade the land. construction of a new building began on may 1 and was completed on october 29. construction expenditures were as follows (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (use appropriate factor(s) from the tables provided.): may 1 $ 1,200,000 july 30 1,500,000 september 1 900,000 october 1 1,800,000 san antonio borrowed $3,000,000 at 8% on may 1 to finance construction. this loan, plus interest, will be paid in 2017. the company also had the following debt outstanding throughout 2016: $2,000,000, 9% long-term note payable $4,000,000, 6% long-term bonds payable in november, the company purchased 10 identical pieces of equipment and office furniture and fixtures for a lump-sum price of $600,000. the fair values of the equipment and the furniture and fixtures were $455,000 and $245,000, respectively. in december, san antonio paid a contractor $285,000 for the construction of parking lots and for landscaping.required: 1. determine the initial values of the various assets that san antonio acquired or constructed during 2016. the company uses the specific interest method to determine the amount of interest capitalized on the building construction 2.how much interest expense will san antonio report in its 2016 income statement?
Solved
Show answers
More tips
- G Goods and services Don t Let Your Fridge Smell Bother You: How to Get Rid of Unpleasant Odors in Your Refrigerator...
- A Animals and plants What Do Terriers Eat?...
- F Food and Cooking Discover the Benefits and Properties of Dates...
- C Computers and Internet Dynamically Assigned IP Address: What Is It and How Does It Work?...
- S Style and Beauty How to Get Rid of Acne: Scientifically Proven Methods...
- H Health and Medicine Simple Ways to Lower Cholesterol in the Blood: Tips and Tricks...
- O Other How to Choose the Best Answer to Your Question on The Grand Question ?...
- L Leisure and Entertainment History of International Women s Day: When Did the Celebration of March 8th Begin?...
- S Style and Beauty Intimate Haircut: The Reasons, Popularity, and Risks...
- A Art and Culture When Will Eurovision 2011 Take Place?...
Answers on questions: Business
- H Health Use the diagram below to answer the question. 1 point The diagram below represents a section of a molecule that carries genetic information. a sequence of paired bases folds of...
- M Mathematics A trail in a local park is 2 3/4 miles long. Mia walked the whole trail and half of the way back before taking a break for lunch. If T is the total number of miles Mia walked...
Ответ: