On January 2, 2017, Sheridan Company began the construction of a new citrus processing plant. The automated
Fantastic news! We've Found the answer you've been seeking!
Question:
On January 2, 2017, Sheridan Company began the construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2018. Expenditures for the construction were as follows:
January 2, 2017 | $ 608000 |
September 1, 2017 | 1812000 |
December 31, 2017 | 1812000 |
March 31, 2017 | 1812000 |
September 30, 2018 | 1209000 |
Sheridan Company borrowed $3340000 on a construction loan at 12% interest on January 2, 2017. This loan was outstanding during the construction period. The company also had $12100000 in 9% bonds outstanding in 2017 and 2018.
The interest capitalized for 2017 was:
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
Posted Date: