![juniorracer148](/avatars/36933.jpg)
juniorracer148
30.03.2020 •
Business
On June 1, 2020, the Crocus Company began construction of a new manufacturing plant. The plant was completed on October 31, 2021. Expenditures on the project were as follows ($ in millions): July 1, 2020 64 October 1, 2020 32 February 1, 2021 40 April 1, 2021 26 September 1, 2021 25 October 1, 2021 11 On July 1, 2020, Crocus obtained a $80 million construction loan with a 6% interest rate. The loan was outstanding through the end of October, 2021. The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 8%. This note was outstanding during all of 2020 and 2021. The company's fiscal year-end is December 31. What is the amount of interest that Crocus should capitalize in 2021, using the specific interest method? (Enter your answers to nearest whole dollar amount.)
Solved
Show answers
More tips
- C Computers and Internet Connecting Your TV to Your Computer: Easy and Fast...
- L Leisure and Entertainment How to Make a Crab Trap in Just a Few Minutes...
- H Health and Medicine How Much Does Abortion Cost? Expert Answers and Insights...
- S Sport How to Build Arm Muscles? Effective Exercises and Tips...
- H Health and Medicine When can it be said that a person has a normal pulse?...
- A Art and Culture When Will Eurovision 2011 Take Place?...
- S Style and Beauty How to Choose the Perfect Hair Straightener?...
- F Family and Home Why Having Pets at Home is Good for Your Health...
- H Health and Medicine How to perform artificial respiration?...
- H Health and Medicine 10 Tips for Avoiding Vitamin Deficiency...
Answers on questions: Business
- B Business The adjusted trial balance for Martell Bowling Alley at December 31, 2017, contains the following accounts: Debit Credit Buildings $128,800 Common stock $90,000 Accounts...
- B Business Amarket research company wants to collect opinions on the comfort and performance of a new type of sneaker by brand x. which group of individuals would be the best choice...
- B Business And his compatriots designed furniture, stained glass, tiles, wallpaper, and fabrics....
- B Business Is a process whereby companies compare their practices and performance measurements to those of other companies?...
- B Business If a monopolist is producing a quantity where marginal revenue is equal to $16 and the marginal cost is equal to $17, the monopolist should...
- B Business If fixed costs are $100,000, variable cost per unit is $40, and the selling price is $60, how many units must be sold for the firm to break even? 5,000 2,500 1,000 10,000...
- B Business What is domestic trade? a. when products, services, and money are exchanged within a single country b. when products, services, and money are exchanged between different...
- B Business Bella is looking into getting an apartment that costs $800 per month. how much does she need to make per year in order to comfortably afford this much in rent?...
- B Business Product t u sales $680,000 $320,000 costs: variable costs $540,000 $ 220,000 fixed costs 145,000 40,000 total costs $685,000 $260,000 income (loss) $ (5,000) $ 60,000...
- B Business Desktop vs mobile. the nuances in optimizationif you have a website, check how many visitors open it on tablets and smartphones – perhaps the result will surprise you....
Ответ:
Answer :
$2.84 millions
Explanation :
Average expenditures for 2020
= [($58 million * 6 months / 6 months) + ($26 million * 3 months / 6 months)] = $71 millions
Amount of interest that Crocus should capitalize in 2020, using the specific interest method
= Average expenditures for 2020 * Interest rate * 6 months / 12 months
= $71 millions * 8 % * 6 months / 12 months
= $2.84 millions
Ответ:
Nice
Explanation: