Solution-What was the interest capitalized for kendall

What was the interest capitalized for kendall

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Reference no: EM131796825

Problem

On January 1, 2016, Kendall Inc. began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2017. Expenditures on the project were as follows:

January 1, 2016 $200,000
September 1, 2016    $300,000
December 31, 2016    $300,000
March 31, 2017    $300,000
September 30, 2017 $200,000

Kendall borrowed $750,000 on a construction loan at 12% interest on January 1, 2016. This loan was outstanding throughout the construction period. The company had $4,500,000 in 9% bonds payable outstanding in 2016 and 2017.

What was the Interest capitalized for 2016.

Reference no: EM131796825

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What was the interest capitalized for kendall

Reference no: EM131796825

Reference no: EM131796825

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