On January 1, 2016, Olvert Corp. signed a contract to have Bob's Builders constructa distribution center...

 

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On January 1, 2016, Olvert Corp. signed a contract to have Bob's Builders constructa distribution center at a cost of $10,000,000. It was estimated that it would take two years to complete the project. Also on January 1, 2017, to finance the construction cost, Tolvin borrowed $10,000,000 payable in five annual installments of $4.000,000 plus interest at the rate of 6%. During 2017, Tolvin made the following construction-related expenditures: 5000,000 Amount x 2/12 x 8/)2 5112 2/12 Date $2,200,000 $1,700,000 S 700,000 S 400,000 2/1 5/1 8/1 11/1 What amount should Tolvin report as capitalized interest at December 31, 2017? a. S621,000 S300,000 c. $207,000 d. S150,000 10,000, 000 On January 1, 2016, Olvert Corp. signed a contract to have Bob's Builders constructa distribution center at a cost of $10,000,000. It was estimated that it would take two years to complete the project. Also on January 1, 2017, to finance the construction cost, Tolvin borrowed $10,000,000 payable in five annual installments of $4.000,000 plus interest at the rate of 6%. During 2017, Tolvin made the following construction-related expenditures: 5000,000 Amount x 2/12 x 8/)2 5112 2/12 Date $2,200,000 $1,700,000 S 700,000 S 400,000 2/1 5/1 8/1 11/1 What amount should Tolvin report as capitalized interest at December 31, 2017? a. S621,000 S300,000 c. $207,000 d. S150,000 10,000, 000

Answer rating: 100% (QA)

Solution The correct option is b ie 300000 Th... View the full answer