Question: ABC began constructing a building for its own use at the beginning of the year. During the year ABC incurred interest of $14034 on specific

ABC began constructing a building for its own use at the beginning of the year. During the year ABC incurred interest of $14034 on specific construction debt, and $86735 on other borrowings. Interest computed on the weighted-average amount of accumulated expenditures for the building during the year was $91035.

The amount of interest ABC should capitalize is:

Step by Step Solution

★★★★★

3.47 Rating (147 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Answer 91035 Amount of interest ABC should capitalize is Interest computed on the weightedaver... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

The following questions are adapted from a variety of sources including questions developed by the AICPA Board of Examiners and those used in the Kaplan CPA Review Course to study property, plant,...

The following questions are used in the Kaplan CPA Review Course to study property, plant, and equipment and intangible assets while preparing for the CPA examination. Determine the response that...

Kobe Company began constructing a building for its own use in February 2014. During 2014, Kobe incurred interest of $70,000 on specific construction debt and $15,000 on other borrowings. Interest...

1. ABC exchanged cash of $17 and a machine with a carrying value of $1897 and a fair value of $3739 for a machine. The exchange has commercial substance. At what amount should ABC record the machine...

ABC purchased a machine that has an estimated useful life of 5 years for $4880 The machine's salvage value is estimated to be $469 ABC uses the straight-line depreciation method The depreciation for...

ABC began constructing a building for its own use at the beginning of the year. During the year ABC incurred interest of $16823 on specific construction debt, and $48933 on other borrowings. Interest...

red ABC began constructing a building for its own use at the beginning of the year. During the year ABC incurred interest of $39967 on specific construction debt, and $83336 on other borrowings....

Boz Co . began constructing a building for its own use in January. During the year, Boz Co . incurred interest of $ 6 0 , 0 0 0 on specific construction debt and $ 3 0 , 0 0 0 on other borrowings....

Posner Inc. began constructing a building for its own use in January of Year 4. During Year 4, Posner incurred interest of $62,000 on specific construction debt related to this building and $22,000...

One kilopond (1 kp) is the weight of 1 kg in the standard gravitational field. How many Newtons (N) is that?

(a) Let (X1,... , Xn) ~ multinomial (m, pi,..., pn). Consider testing H0: p1 = p2 versus H1: p1 p2. A test that is often used, called McNemar's Test, rejects H0 if Show that this test statistic has...

Part 2: Designing an Online Learning Community If you had the opportunity to design an ideal online learning community for this course, how would it look and function? How would you ensure...

Pohlman Company makes aircraft engines. Pohlman has noticed that, in general, each new engine design is subject to an 80 percent learning rate. Assume that the first unit produced takes 500 hours,...

Lomas Electronics manufactures a portable testing device for use in oil exploration. The products price and cost characteristics are: Selling price per unit . . . . . . . . . . . $ 130 Variable cost...

Odd Wallow Drinks is considering adding a new line of fruit juices to its merchandise products. This line of juices has the following prices and costs: Selling price per case (24 bottles) of juice ....

Juicy Beauty manufactures and sells a face cream to small specialty stores in the greater Los Angeles area. It presents the monthly operating income statement shown here to George Lopez, a potential...

Journalize the following transactions that occurred in February 2015 for Gems. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name....

What is the answer D Question 54 A fight or flight response is associated with activation of which type of nervous system response? O Parasympathetic nervous system response Infratentorial nervous...

Clonal, Inc., a biotechnology company, developed and patented a diagnostic product called Trouver. Clonal purchased some research equipment to be used exclusively for Trouver and subsequent research...

Holiday Brands issued $30 million of 6%, 30-year bonds for $27.5 million. What is the amount of interest that Holiday will pay semiannually to bondholders?

The following condensed information was reported by Peabody Toys, Inc., for 2011 and 2010: Required: 1. Determine the following ratios for 2011: a. Profit margin on sales b. Return on assets c....

A population has a proportion equal to 0.30. Calculate the following probabilities with n 100: a. P(p 0.35) b. P(p 0.40) c. P(0.25 p 0.40) d. P(p 0.27).

If a random sample of 200 items is taken from a population in which the proportion of items having a desired attribute is p 0.30, what is the probability that the proportion of successes in the...

Given a population where the probability of a success is p 0.40, if a sample of 1,000 is taken, a. Calculate the probability the proportion of successes in the sample will be less than 0.42. b. What...