IFRS Problem Ch. 10 - March 31 - $1,200,000 June 30 -...

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G AAP or IFRS???  Try this problem:      IFRS – Practice Problem – CH. 10:   On January 2, 2009, the Fresh Start Company began construction on a new  manufacturing plant for its own use.  The building was completed in 2010.  The  company borrowed $1,500,000 at 8% on January 2nd to help finance the  construction.  In addition to the construction loan, Fresh Start had the following  debt outstanding throughout 2009:     $5,000,000 – 12% Bonds     $3,000,000 – 8% long-term note     Construction expenditures incurred during 2009 were as follows:           January 2 -                 $600,000
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Unformatted text preview: March 31 - $1,200,000 June 30 - $800,000 September 30 - $600,000 December 31 - $400,000 Required: A) Calculate the amount of interest capitalized in 2009 using the specific interest method. B) How might this differ if Fresh Start Company prepares their financial statements according to International Accounting Standards? Review the solution once you have completed the problem....
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This note was uploaded on 11/30/2010 for the course BUSINESS 4230 taught by Professor Dee during the Spring '10 term at Community College of Denver.

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