Business, 19.11.2019 04:31 tbixler2021
Matrix inc. borrowed $1,000,000 at 8% to finance the construction of a new building for its own use. construction began on january 1, 2016 and was completed on october 31, 2016. expenditures related to this building were: january 1$252,000 (includes cost of purchasing land of $150,000) may 1310,000 july 1420,000 october 31276,000 in addition, matrix had additional debt (unrelated to the construction) of $500,000 at 9% and $800,000 at 10%. all debt was outstanding for the entire year. required: 1. compute the amount of interest capitalized, related to the construction of the building. 2. if the expenditures are assumed to have been incurred evenly throughout the year, compute the weighted average accumulated expenditures.
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Matrix inc. borrowed $1,000,000 at 8% to finance the construction of a new building for its own use....
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