On January 1, 20x1, Entity A started the construction of a qualifying asset. The qualifying asset...
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On January 1, 20x1, Entity A started the construction of a qualifying asset. The qualifying asset is financed through general borrowings. The average expenditures during the year amounted to $9,500,000. The capitalization rate is 11%. The actual borrowing costs incurred during the period were $1,990,000. How much are the borrowing costs eligible for capitalization? On January 1, 20x1, Entity A started the construction of a qualifying asset. The qualifying asset is financed through general borrowings. The average expenditures during the year amounted to $9,500,000. The capitalization rate is 11%. The actual borrowing costs incurred during the period were $1,990,000. How much are the borrowing costs eligible for capitalization?
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Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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