Using the information in RE10-7 and RE10-8, calculate Dexters capitalized interest on the student condominium complex for

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Using the information in RE10-7 and RE10-8, calculate Dexter’s capitalized interest on the student condominium complex for Year 2.
In RE10-7, 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.
In RE10-8, 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.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Intermediate Accounting

ISBN: 978-0324659139

11th edition

Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones

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