On January 1, 202x, You Co. had the following borrowings made for general purposes and a...
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On January 1, 202x, You Co. had the following borrowings made for general purposes and a part of the proceeds was used to finance the construction of a qualifying asset. Principal 12% short-term note 14% bank loan (3 years) 16% note payable (5 years) The construction of the qualifying asset was stated on immediately and expenditures incurred on the qualifying asset were as follows: January 31 March 31 July 30 October 1 December 31 40,000,000 72,000,000 88,000,000 How much is the capitalized borrowing cost? 19,200,000 8,800,000 14,000,000 21,600,000 1,200,000 On January 1, 202x, You Co. had the following borrowings made for general purposes and a part of the proceeds was used to finance the construction of a qualifying asset. Principal 12% short-term note 14% bank loan (3 years) 16% note payable (5 years) The construction of the qualifying asset was stated on immediately and expenditures incurred on the qualifying asset were as follows: January 31 March 31 July 30 October 1 December 31 40,000,000 72,000,000 88,000,000 How much is the capitalized borrowing cost? 19,200,000 8,800,000 14,000,000 21,600,000 1,200,000
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Answer i Annual Interest 12 short term note 12 x 40000000 480... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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