What is the justification for capitalizing such interest

Assignment Help Accounting Basics
Reference no: EM131117936

1. One financial accounting issue encountered when a company constructs its own plant is whether the interest cost on funds borrowed to finance construction should be capitalized and then amortized over the life of the assets constructed. What is the justification for capitalizing such interest? 

Reference no: EM131117936

Questions Cloud

What interest rates should be used in determining : What interest rates should be used in determining the amount of interest to be capitalized? How should the amount of interest to be capitalized be determined?
The basic cost accounting practices for job shops : You will summarize the basic cost accounting practices for job shops, material processors, and advanced manufacturing organizations using managerial accounting terminology.
What is the length of the trail : A straight trail with a uniform inclination of 11° leads from a lodge at an elevation of 600 feet to a mountain lake at an elevation of 9000 feet. What is the length of the trail (to the nearest foot)
Create a new event by selecting let the arrow keys move : Then, link the biplane, as shown below. Run the flight simulator again to see the effect.
What is the justification for capitalizing such interest : One financial accounting issue encountered when a company constructs its own plant is whether the interest cost on funds borrowed to finance construction should be capitalized and then amortized over the life of the assets constructed. What is the ju..
The common stock of plymouth shippers : Over the last four years, the common stock of Plymouth Shippers has had an arithmetic average return of 9.3 percent. Three of those four years produced returns of 14.1 percent, 15.6 percent, and 3.4 percent, respectively. What is the geometric av..
Community of north philadelphia : Who found Temple University and how did the founding of Temple change the community of North Philadelphia?
Discuss the rise of the hundred years : Discuss the rise of the Hundred Years' War. Select the one development related to the war that you think was most significant for the development of Europe in this time, and discuss why?
Find the equation of the tangent line to the graph : Find the equation of the tangent line to the graph of f(x)=5-x2  at (2,1) you could first use the limit definition to find the slop. What expression would represent the slope?

Reviews

Write a Review

Accounting Basics Questions & Answers

  What are the useful lives the company uses for estimating

1. calculate the current ratio for ye 2109 and ye 13110.2. what were the diluted earnings per share for ye 2308?3. what

  Three broad categories of service activities

1. Identify and briefly describe the three broad categories of service activities that most general purpose governments perform. 2. Describe how the reporting objectives for government­wide and governmental fund financial statements are different.

  Plaintiff finds stolen goods and arranges return

Plaintiff finds stolen goods and arranges return.

  Bassinger company purchases an oil tanker depot on january

bassinger company purchases an oil tanker depot on january 1 2010 at a cost of 600000. bassinger expects to operate the

  The security is to be held short-term profits

Purchased $100,000 of U.S. Treasury 6% bonds, paying 102 plus accrued interest of $1000. The security is to be held short-term profits.

  What are the potential penalties

Is Sanchez Printers proceeding legally by requiring its employees to work extra hours without compensation to make up for the hours lost on the Friday holiday? Explain. What are the potential penalties the company could face if their actions are i..

  Analysis of county revenues shows that approximately

Analysis of county revenues shows that approximately 50 percent are from the sales tax. The year end fund balance is entirely classified as Unassigned.

  Problem on revenue and payroll cycles

What internal controls components are commonly found among the revenue and payroll cycles? What components are unique to each cycle? - Answer 150-200 words.

  Poduct a unit sales price 5 unit contribution margin 75

product a unit sales price 5 unit contribution margin .75 sales mix 80product b unit sales price 4 unit contribution

  Discuss the advantages and disadvantages of each costing

discuss the advantages and disadvantages of each costing method including fifo lifo and average cost.discuss the

  Explain whether each of following projects is likely to

explain whether each of the following projects is likely to have risk similar to the average risk of the firm.a. the

  If hallas company does close down the northwest plant fixed

hallas company manufactures a fast-bonding glue in its northwest plant. the company normally produces and sells 44000

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd