How much is the total capitalizable cost as of Dec

Assignment Help Financial Accounting
Reference no: EM132925577

Question - On Jan. 1, 2020, the entity started the preparation of its building construction. On the same date, it specifically acquired a loan for the construction.

The entity spent 3,000,000 on Jan. 1, 2020 and 5,000,000 on Mar. 31, 2021.

The loan has a principal amount of 10,000,000, interest of 5% due every Jan. 1, maturity date of Jan. 1, 2023, net proceeds of 9,732,700, and an effective interest rate of 6%. While not yet paid out for the construction, the amount borrowed was temporarily invested. Investment income for the two years totaled 480,000. How much is the total capitalizable cost as of Dec. 31, 2021?

Reference no: EM132925577

Questions Cloud

What is the equipment after-tax net salvage value : The used equipment can be sold today for $3.6 million, and its tax rate is 25%. What is the equipment's after-tax net salvage value
Discuss the recommended screening tests : Discuss the recommended screening tests, using the latest evidence-based guidelines that the nurse practitioner should perform on Janice.
What rate of return was earned by the original holder : What rate of return was earned by the original holder of the bill; that is, what is the holding period yield? Show your working
Contrast the differences among algae and protozoa : What are viruses? What are some properties that differentiate viruses from bacteria? List at least 3 viruses and the type of diseases that they cause.
How much is the total capitalizable cost as of Dec : The entity spent 3,000,000 on Jan. 1, 2020 and 5,000,000 on Mar. 31, 2021. How much is the total capitalizable cost as of Dec. 31, 2021
How information may impact the way prescribe medications : How information may impact the way prescribe medications to patients. how the role of epigenetics may contribute to pharmacologic action.
Relationship between performance appraisal training : Which features of PAT program contribute to strengthening the relationship between performance appraisal training and development? How does the appraisal system
Evaluation between the two managers : In the scenario where the Company is evolving into a matrix organization, should Telespazio adopt double-rater system, or should responsibility for performance
Hiring employees in human resource management : On the topic of "hiring employees" in Human Resource Management:Give a Summary/history of the topic

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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