Thornton Industries began construction of a warehouse on July 1, 2024. The project was completed on...
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Thornton Industries began construction of a warehouse on July 1, 2024. The project was completed on March 31, 2025. No new loans were required to fund construction. Thornton does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $3,000,000, 8% note $5,000,000, 4% bonds Construction expenditures incurred were as follows: July 1, 2024 September 30, 2024 November 30, 2024 January 30, 2025 $ 660,000 930,000 930,000 870,000 The company's fiscal year-end is December 31. Required: Calculate the amount of interest capitalized for 2024 and 2025. Complete this question by entering your answers in the tabs below. 2024 2025 Calculate the amount of interest capitalized for 2024. Note: Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 should be entered as 12.3%). Date July 1, 2024 September 30, 2024 November 30, 2024 Accumulated expenditures Average accumulated expenditures Expenditure Amount X X x Weight Interest Rate % X Portion of Year Outstanding Average = = = = Capitalized Interest Thornton Industries began construction of a warehouse on July 1, 2024. The project was completed on March 31, 2025. No new loans were required to fund construction. Thornton does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $3,000,000, 8% note $5,000,000, 4% bonds Construction expenditures incurred were as follows: July 1, 2024 September 30, 2024 November 30, 2024 January 30, 2025 $ 660,000 930,000 930,000 870,000 The company's fiscal year-end is December 31. Required: Calculate the amount of interest capitalized for 2024 and 2025. Complete this question by entering your answers in the tabs below. 2024 2025 Calculate the amount of interest capitalized for 2024. Note: Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 should be entered as 12.3%). Date July 1, 2024 September 30, 2024 November 30, 2024 Accumulated expenditures Average accumulated expenditures Expenditure Amount X X x Weight Interest Rate % X Portion of Year Outstanding Average = = = = Capitalized Interest
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