A firm which is self-constructing a new factory has correctly calculated Avoidable Interest for the year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A firm which is self-constructing a new factory has correctly calculated Avoidable Interest for the year of $100,000. The entire amount of the Weighted Average Accumulated Expenditure was covered by a specific construction loan. The Accountant is about to capitalize the full $100,000 when new information emerges. The new information is that the firm received deposit interest of $15,000 from the funds raised from the specific construction loan. Therefore, the total amount of interest which the firm should capitalize (after any relevant adjusting entries) for the year is: Select one: O a. $115,000 O b. $85,000 O c. $100,000 O d. $0 O e. None of the these answers A firm which is self-constructing a new factory has correctly calculated Avoidable Interest for the year of $100,000. The entire amount of the Weighted Average Accumulated Expenditure was covered by a specific construction loan. The Accountant is about to capitalize the full $100,000 when new information emerges. The new information is that the firm received deposit interest of $15,000 from the funds raised from the specific construction loan. Therefore, the total amount of interest which the firm should capitalize (after any relevant adjusting entries) for the year is: Select one: O a. $115,000 O b. $85,000 O c. $100,000 O d. $0 O e. None of the these answers A firm which is self-constructing a new factory has correctly calculated Avoidable Interest for the year of $100,000. The entire amount of the Weighted Average Accumulated Expenditure was covered by a specific construction loan. The Accountant is about to capitalize the full $100,000 when new information emerges. The new information is that the firm received deposit interest of $15,000 from the funds raised from the specific construction loan. Therefore, the total amount of interest which the firm should capitalize (after any relevant adjusting entries) for the year is: Select one: O a. $115,000 O b. $85,000 O c. $100,000 O d. $0 O e. None of the these answers A firm which is self-constructing a new factory has correctly calculated Avoidable Interest for the year of $100,000. The entire amount of the Weighted Average Accumulated Expenditure was covered by a specific construction loan. The Accountant is about to capitalize the full $100,000 when new information emerges. The new information is that the firm received deposit interest of $15,000 from the funds raised from the specific construction loan. Therefore, the total amount of interest which the firm should capitalize (after any relevant adjusting entries) for the year is: Select one: O a. $115,000 O b. $85,000 O c. $100,000 O d. $0 O e. None of the these answers
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below To determine th... View the full answer
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
Students also viewed these accounting questions
-
Master Paint Industries' sales in 2019 were $18 million, while in 2017 they were $10 million. Determine the sales growth rate. (4 points) 10. Determine the present value of a $3,500 perpetuity if the...
-
Reynaldo Seplveda retires in 20 years and currently has savings of $125,000. Reynaldo thinks he will need $650,000 at the beginning of his retirement and has no additional funds saved. He determines...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
A small project consists of three activities: A, B, and C. To start activity C, both activities A and B need to be complete. Activity A takes 3 days with a probability of 50 percent and 5 days with a...
-
A farmer is concerned that a change in fertilizer to an organic variant might change his crop yield. He subdivides 6 lots and uses the old fertilizer on one half of each lot and the new fertilizer on...
-
You go to a convenience store to buy candy and find the owner to be rather odd. He allows you to buy pieces in multiples of four, and to buy four, you need $0.23. He only allows you to do this by...
-
S & S Janitorial, Inc., paid \($600\) for supplies and purchased additional supplies on account for \($800.\) S & S Janitorial, Inc., also paid \($300\) of the accounts payable. What is the balance...
-
A business issued a 45-day, 6% note for $80,000 to a creditor on account. Journalize the entries to record (a) The issuance of the note and (b) The payment of the note at maturity, including interest.
-
Early in 2 0 1 4 , Sparky, Inc. finalized plans to expand operations. The first stage was completed on January 2 9 th with the purchase of a tract of land to be used as the location for their new...
-
case study:- Prestige Dance academy please answer the question below. CASE 11 Prestige Dance Academy P icture a group of children pretending to be butterflies twirling and leaping around a calming...
-
1. Convert the following Pseudo-code to actual coding in any of your preferred programming Language (C/C++/Java will be preferable from my side!) declare integer variables named as a, b, w, u, V...
-
What are the differences between internal users and external users? Give examples.
-
Please explain what the consequences are if an information system lacks a system owner.
-
Who are the typical stakeholders in an information system? What are their roles?
-
What are the diferences between electronic commerce (e-commerce) and electronic business (e-business)?
-
What are some of the business drivers for todays information systems?
-
A negatively charged rod is brought near a neutral metal sphere. Which of the following statements is true? There is a repulsive force between the rod and sphere. There is an attractive force between...
-
A city maintains a solid waste landfill that was 12 percent filled at the end of Year 1 and 26 percent filled at the end of Year 2. During those periods, the government estimated that total closure...
-
When and why would a NFPO use replacement cost rather than net realizable value to determine whether or not inventory should be written down?
-
On June 1, Year 3, Forever Young Corp. (FYC) ordered merchandise from a supplier in Turkey for Turkish lira (TL) 200,000. The goods were delivered on September 30, with terms requiring cash on...
-
Grammy Ltd., a Canadian company, is dealing with a supplier in a foreign country. On May 1, Year 4, the company made purchases totalling FF3,270,000; this amount is payable in six months. Grammy did...
-
Use Lagrange's equation to derive the equation of motion for the simple pendulum of Example 4.15, except here assume that the mass \(m\) is suspended on a rigid bar that is connected to the support...
-
Resolve Problem 19 including damping. Discuss the importance of damping by comparing the two results. Problem 19: Structures are sometimes subjected to very rapidly applied loads of extremely short...
-
Solve for the response for all time of an underdamped oscillator that is driven by the forcing function shown in (a) Figure 4.34, and (b) Figure 4.35. Use the convolution integral. -2.0 -1.5 -1.0 1...
Study smarter with the SolutionInn App