Interest that should be capitalized

Assignment Help Finance Basics
Reference no: EM1334271

Nguyen Corp constructed assets costing $600 000. The Weighted average accumulated expenditures on these assets during the year was $400 000. To help pay for construction, $320 000 was borrowed at 10% at the beginning of year. Some funds were not needed for construction so thus were temporarily invested in short term securities which resulted in $4500 interest revenue. Other than the construction funds borrowed, the only other debt outstanding for the year was a $250 000, 10 year, 9% note payable dated January 1991.

What is the amount of interest that should be capitalized by Nguyen Corp during the year of 2005?

Reference no: EM1334271

Questions Cloud

Net total dollar advantage of purchasing part than making : What is the net total dollar advantage (disadvantage) of purchasing the part rather than making it?
Strategic leadership - human resources : Position Paper on the guidlines for research in regards to human subject participation and Institutional Research Board requirements.
Explain technology leadership vs technology followership : Explain Technology leadership vs technology followership and Is there a one-to-one correlation between the effects of one on the other
Reaction of all customers to the new policy : On the basis of these findings make an inference about the reaction of all customers to the new policy.
Interest that should be capitalized : Nguyen Corp constructed assets costing $600 000. The Weighted average accumulated expenditures on these assets during the year was $400 000. Find out the amount of interest that must be capitalized by Nguyen Corp during the year of 2005?
Human resource development transfer of training : Can anyone tell me what exactly is the "Baldwin,T & Ford,K" of Model designed in 1988 and is related to Human Resource Development Transfer of Training?
Explaining creative-scientific and persuasive thinking : Analyze and explain the following three different types of thinking styles: Creative, Scientific, and Persuasive Thinking.
Important information about career development plan : Using the Electronic Reserve Readings (ERR), Internet, and/or additional resources - prepare a five-year career development plan for a credit card company call center
Explain communication coaching in the workplace : Explain Communication coaching in the workplace- Practical ideas and What are your strengths and weaknesses as a presenter

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Computation of number of shares to be issued for purchase

Computation of the number of shares to be issued for purchase of the machinery and How many shares of stock must The Pasta Maker sell to finance its new machinery

  Binomial option and risk-neutral

Critically discuss the differences between the binomial option pricing model and risk-neutral method of option pricing.

  Values and statement of cash flows

What is the present value of investment in equipment if it is expected to provide annual savings of $10,000 for 10 years and to have resale value of $25,000 at the end of that period.

  Computing npv in capital budgeting exercise

United Technologies is not totally certain that salvage value will be this amount and wants to find out NPV without this amount in capital budgeting exercise. NPV would therefore be?

  Explain capital gain from bonds

Explain Capital Gain from Bonds and Meade Corporation bonds mature in 6 years and have a yield to maturity of 8.5 percent

  Calculation of budgeted production dollars

Calculation of budgeted production dollars and Directing and coordinating operations during the period

  Finding the future value of annuity

Find out the Future Value of the Annuity with $7000 for the  period of 15 years at the interest rate of eight percent per annum?

  Evaluate the term capital budgeting

Evaluate the term Capital budgeting and What is the yield to call of Hood Corporation's bonds

  Capital valuation-walmart

Justify the current market price of the organization's (Walmart) debt, if any, and equity using various capital valuation models.

  Applications of basic tvm concepts

Jean Splicing will receive $50,000 in 50 years or $2,000 today. If long-term rates are 7 percent, what choice would you recommend? Find out the current value of the future payments

  True and false questions on initial public offering

True and false questions on initial public offering and other forms of capital and The proceeds of the A123 IPO were used to repay bank loans and buy back outstanding debt

  Computation of current yield and ytm and bond price

Computation of current yield and YTM and bond price and assume that the yield to maturity remains constant for the next 3 years

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