Question: Can anyone help with this problem? And show how you calculated your answer? Thank you! on of a combination office and warehouse building for its
on of a combination office and warehouse building for its own use at an estimated cost of $5,035,800 on January 1, 2017. Bonita expected to complete the building by December 31, 2017. Bonita has the following debt obligations outstanding during the construction period Construction loan-12% interest, payable semiannually, issued December 31, 2016 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2018 Long-term loan-11% interest, payable on January 1 of each year, Principal payable on January 1, 2021 $1,991,900 1,607,900 1,004,700 Assume that Bonita completed the office and warehouse building on December 31, 2017, as planned at a total cost of $5,186,100, and the weighted-average amount of accumulated expenditures was $3,832,900. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to o decimal places, e.g. 5,275.) Avoidable Interest Compute the depreciation expense for the year ended December 31, 2018. Bonita elected to depreciate the building on a straight-line basis 5,275.) Depreciation Expense ned that the asset has a useful life of 30 years and a salvage value of $301,600. (Round answer to o decimal places, e.g
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