PROBLEM 10-5 - Architects fees 82,000 Interest capitalized...

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PROBLEM 10-5 (a) George Solti Corporation Cost of Land (Site #101) As of September 30, 2008 Cost of land and old building $600,000 Real estate broker’s commission 36,000 Legal fees 6,000 Title insurance 18,000 Removal of old building 54,000 Cost of land $714,000 (b) George Solti Corporation Cost of Building As of September 30, 2008 Fixed construction contract price $3,000,000 Plans, specifications, and blueprints 21,000
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Unformatted text preview: Architects fees 82,000 Interest capitalized during 2007 (Schedule 1) 120,000 Interest capitalized during 2008 (Schedule 2) 190,000 Cost of building $3,413,000 Schedule 1 Interest Capitalized During 2007 and 2008 Weighted-average accumulated construction expenditures X Interest rate = Interest to be capitalized 2007: $1,200,000 X 10% = $120,000 2008: $1,900,000 X 10% = $190,000 10-54...
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This note was uploaded on 06/06/2010 for the course ACCOUNTING ac505 taught by Professor Khan during the Spring '10 term at DeVry Fremont.

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PROBLEM 10-5 - Architects fees 82,000 Interest capitalized...

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