# Lease show all supporting computations. Points will be deducted if yo.docx

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lease show all supporting computations. Points will be deducted if you do not show your work. V V V V 1. On March 1, Morris Co. began construction of a small building. The following expenditures were incurred for construction: March 1 \$ 150,000 April 1 \$ 148,000 May 1 360,000 June 1 540,000 July 1 200,000 The building was completed and occupied on July 1. To help pay for construction \$100,000 was borrowed on March 1 on a 4%, three-year note pavable. The only other debt outstanding during the year was a \$1,000,000, 6% note issued two years ago. (4 points) V a) Calculate the weighted average accumulated expenditures. (b) Calculate the avoidable interest. (c) Calculate actual interest.

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Unformatted text preview: (d) What amount of interest should be capitalized as part of the cost of the building? 2. Beeman Company exchanged machinery with an appraised value of \$1,755,000, a recorded cost of \$2,700,000 and Accumulated Depreciation of S1,350,000 with Lacey Corporation for machinery Lacey owns. Lacey's machinery has an appraised value of \$1,695,000, a recorded cost of \$3,240,000, and Accumulated Depreciation of S1,782,000. Lacey also gave Beeman \$60,000 in the exchange. Assume depreciation has already been updated. Prepare the entries on both companies' books assuming that the exchange had commercial substance. (6 points) Description Date Beeman: Debit Credit Lacey:...
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