Agasse Industries began construction of a new facility and took out a $1,500,000, 8% construction loan...
|
Agasse Industries began construction of a new facility and took out a $1,500,000, 8% construction loan on April 1, 2016. Agasse made payments to the general contractor of $481,000 on April 1, $981,000 on August 31, and $581,000 on December 31. |
| Required: |
| Compute the amount of interest that Agasse would capitalize in 2016. (Do not round intermediate calculations.) |
Amount of Interest________
Homework Answers
| Expenditure | |||||
| 1-Apr | 481000*9/9= | 481000 | |||
| 31-Aug | 981000*4/9= | 436000 | |||
| 31-Dec | 581000*0/9= | 0 | |||
| 917000 | |||||
| interest 917000*8%*9/12= | 55020 | ||||
| interest capitalized $55,020 | |||||
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