Pina Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$1,455,000 on March 1, HK$972,000 on June 1, and HK$2,403,000 on December 31. Pina Ltd. had outstanding all year a 10%, 5-year, HK$3,520,000 note payable and an 11%, 4-year, HK$3,080,000 note payable. Determine the amount of borrowing cost that Pina Ltd. would capitalize. Use the capitalization rate used for borrowing cost capitalization purposes. (Round "Capitalization rate" to 2 decimal places, e.g. 2.51 and final answer to O decimal places, e.g. 5,275.) Borrowing cost capitalization HK$

Pina Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$1,455,000 on March 1, HK$972,000 on June 1, and HK$2,403,000 on December 31. Pina Ltd. had outstanding all year a 10%, 5-year, HK$3,520,000 note payable and an 11%, 4-year, HK$3,080,000 note payable. Determine the amount of borrowing cost that Pina Ltd. would capitalize. Use the capitalization rate used for borrowing cost capitalization purposes. (Round "Capitalization rate" to 2 decimal places, e.g. 2.51 and final answer to O decimal places, e.g. 5,275.) Borrowing cost capitalization HK$

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Vaughn Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,968,000 on March 1, $1,248,000 on June 1, and $3,076,020 on December 31. Vaughn Company borrowed $1,145,430 on March 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,433,900 note payable and an 10%, 4-year, $3,482,600 note payable. Compute the weighted-average interest rate used for interest capitalization purposes. (Round answer to 2 decimal places, e.g. 7.58%.) Weighted-average interest rate %
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Current Attempt in Progress Marigold Ltd. is constructing a building Construction began on February 1 and was completed on December 31. Expenditures were HK$2,088,000 on March 1. HK$1.392.000 on June 1, and HK$2,508,000 on December 31. Marigold Ltd. had outstanding all year a 12%, 5-year, HK$4,640,000 note payable and an 13%, 4-year, HK$4,060,000 note payable. Compute the capitalization rate used for borrowing cost capitalization purposes. (Round answer to 2 decimal places, eg. 7.58%) Capitalization rate eTextbook and Media Save for Later Attempts: 0 of 2 used Submit Answer
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Crane Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,836,000 on March 1, $1,236,000 on June 1, and $3,038,370 on December 31.Crane Company borrowed $1,112,250 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,342,100 note payable and an 10%, 4-year, $3,467,800 note payable. Compute the weighted-average interest rate used for interest capitalization purposes. (Round answer to 2 decimal places, e.g. 7.58%.)
Crane Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,836,000 on March 1, $1,236,000 on June 1, and $3,038,370 on December 31.Crane Company borrowed $1,112,250 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,342,100 note payable and an 10%, 4-year, $3,467,800 note payable. Compute the weighted-average interest rate used for interest capitalization purposes. (Round answer to 2 decimal places, e.g. 7.58%.) Weighted-average interest rate enter the weighted-average interest rate rounded to 2 decimal places %
Wildhorse Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,004,000 on March 1, $1,284,000 on June 1, and $3,055,000 on December 31. Wildhorse Company borrowed $1,163,000 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $2,377,000 note payable and an 11%, 4-year, $3,691,000 note payable. Compute avoidable interest for Wildhorse Company. Use the weighted-average interest rate for interest capitalization purposes. (Round weighted-average interest rate to 4 decimal places, e.g. 0.2152 and final answer to 0 decimal places, e.g. 5,275.) Avoidable interest