Amount should oksana baiul report as capitalized interest

Assignment Help Financial Accounting

Reference no: EM13777614

On January 1, 2014, Oksana Baiul, Inc. signed a fixed-price contract to have Builder Associates construct a major plant facility at a cost of $4,410,000. It was estimated that it would take 3 years to complete the project. Also on January 1, 2014, to finance the construction cost, Oksana Baiul borrowed $4,410,000 payable in 10 annual installments of $441,000, plus interest at the rate of 10%. During 2014, Oksana Baiul made deposit and progress payments totaling $1,653,750 under the contract; the weighted-average amount of accumulated expenditures was $881,999 for the year. The excess borrowed funds were invested in short-term securities, from which Oksana Baiul realized investment income of $268,000.

What amount should Oksana Baiul report as capitalized interest at December 31, 2014?

Reference no: EM13777614

Questions Cloud

What is the annual operating cash flow : A company is considering investing in a piece of machinery which will cost $550,000. It will provide an additional $160,000 in sales each year and its annual operating expenses are expected to be $52,000. The machine will be depreciated on a straight..

Describe an online learning scenario : In this reaction and response assignment, you will describe an online learning scenario (imaginary or actual) in which an event has interfered significantly with the ability for the instructor to teach the course. You will then analyze the event a..

Semiannual straight-line amortization on premium : If the amount of a newly issued 13%, 5-year, $100,000 bond on premium is $11,581.00. What is the semiannual straight-line amortization on premium?

What do you believe chicano music is about lalo guerrero : What do you believe Chicano is about Lalo Guerrero that made his music so influential and relevant to the Chicano community? Furthermore, do you think it is accurate to call the genre he helped create Chicano music?

Amount should oksana baiul report as capitalized interest : On January 1, 2014, Oksana Baiul, Inc. signed a fixed-price contract to have Builder Associates construct a major plant facility at a cost of $4,410,000. It was estimated that it would take 3 years to complete the project.

Family member for purposes of the related party rules : Which of the following persons is not a "family member" for purposes of the related party rules? A taxpayer pays $200,000 for real property. The market value of the land and building purchased are $120,000 and $180,000, respectively. The taxpayer's b..

Discuss how you would utilize time management : Discuss how you would utilize time management to handle the situation outlined above. Discuss how you could have utilized that theory to avoid the scenario outlined above

Amount of semiannual straight-line discount amortization : The amount of a bond discount on a newly issued 6%, 5 year, $100,000 bond is $28,092. What is the amount of semiannual straight-line discount amortization?

Public offering versus bank financing issues : What issues should PCI, Inc. consider in its choice of a public offering versus bank financing?

User Account

All Pages