During 2020, bass corporation constructed assets costing $4,000,000. the weightedaverage accumulated expenditures on these assets during 2020 was $2,400,000. to pay for construction, $1,760,000 was borrowed at 10% on january 1, 2020, and funds not needed for construction were temporarily invested in short-term securities, yielding $36,000 in interest revenue. other than the construction funds borrowed, the only other debt outstanding during the year was a $2,000,000, 10-year, 9% note payable dated january 1, 2014. what is the amount of interest that should be capitalized by bass during 2020? a. $240,000
b. $120,000
c. $233,600
d. $377,600

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?

If the findings and the results are not presented properly, the research completed was a waste of time and money. true false

On september 1, 2016, steve loaned brett $2,000 at 12% interest compounded annually. steve is not in the business of lending money. the note stated that principal and interest would be due on august 31, 2018. in 2018, steve received $2,508.80 ($2,000 principal and $508.80 interest). steve uses the cash method of accounting. what amount must steve include in income on his income tax return?