Dexter Construction Corporation is building a student condominium complex; it started on January 1, Year 1. Dexter borrowed $2.5 million on January 1 specifically for the project by issuing a 10%, 5-year, $2.5 million note, which is payable on December 31 of Year 3. Dexter also had a 12%, 5-year, $3 million note payable and a 10%, 10-year, $1.8 million note payable outstanding all year. Calculate the weighted average interest rate for Year 2.
Answer to relevant QuestionsRefer to RE10-7. Dexter’s beginning cumulative costs for Year 2 were $500,000 and ending cumulative costs were $3,000,000. Calculate Dexter’s average cumulative costs.In RE10-7, Dexter Construction Corporation is ...On August 2, 2010, Darmow Corporation purchased a new machine on a deferred payment basis. It made a down payment of $1,000 and will make four monthly installments of $2,500 each beginning on September 1, 2010. The cash ...The Bussell Company exchanged the following assets during 2010:1. Acquired a newer machine by paying $4,000 cash and giving up a machine that originally cost $40,000, has a book value of $25,000, and is worth $30,000.2. Same ...Utica Machinery Company purchases an asset for $1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for $150,000. What is the depreciation rate per hour based on activity?Smith Company is required to charge customers an 8% sales tax on all goods it sells. Smith Company includes sales tax in its sales amount. At the end of May, Smith Company’s sales account for May has a credit balance of ...
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