Chapter 15 Problem 15-24
Date Expenditure Months Amount
January 1, 2008 4,000,000 12 48,000,000
April 1, 2008 5,000,000 9 45,000,000
December 1, 2008 3,000,000 1 3,000,000
12,000,000 96,000,000
Average expenditures in 2008 (96,000,000 / 12) 8,000,000
Applicable to specific loan (3,000,000)
Applicable t general loan 5,000,000
Actual expenditures in 2008 12,000,000
Capitalizable interest in 2008
Specific (3,000,000 x 10%) 300,000
General (5,000,000 x 12%) 600,000
Total cost of building 12,900,000
Date Expenditure Months Amount
January 1, 2009 12,900,000 6 77,400,000
March 1, 2009 6,000,000 4 _24,000,000
18,900,000 101,400,000
Average expenditures in 2009 (101,400,000 / 6) 16,900,000
Applicable to specific loan ( 3,000,000)
Applicable to general loan 13,900,000
Note that the construction period in 2009 is only 6 months because the building
was completed on June 30, 2009. Thus, the average expenditures should be for
6 months only.
Actual expenditures in 2009 18,900,000
Capitalizable interest in 2009
Specific (3,000,000 x 10% x 6/12) 150,000
General (13,900,000 x 12% x 6/12) 834,000
Total cost of new building – 6/30/2009 19,884,000
No comments:
Post a Comment