Business, 16.04.2021 19:00 dbzrules02
On January 1, 2021, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The only interest-bearing debt the company had outstanding during 2021 was long-term bonds with a book value of $11,000,000 and an effective interest rate of 8%. Construction expenditures incurred during 2021 were as follows:
January 1 $600,000
March 1 660,000
July 31 540,000
September 30 700,000
December 31 400,000
Required:
Calculate the amount of interest capitalized for 2021.
Answers: 2
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On January 1, 2021, the Shagri Company began construction on a new manufacturing facility for its ow...
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