Question: please solve Interest During Construction Matrix inc, borrowed $1,000,000 at 8% to finance the construction of a new building for its own use, Construction began
Interest During Construction Matrix inc, borrowed $1,000,000 at 8% to finance the construction of a new building for its own use, Construction began on January 1,2019 , and was completed cn October 31, 2019. Expenditures related to this building were: "includes cost of purchasing land of $150,000) In addition, Matrix had additional debt (unrelated to the construction) of $500,000 at 9% and $800,000 at 10%. All debt was outstanding for the entire year. Required: 1. Compute the amount of interest capitalized related to the construction of the building. 1 2. If the expenditures are assumed to have been incurred evenly throughout the year: Compute weiahted average accumulated expenditures 4 Compute the amount of interest capitalized on the building
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