26. During 2015, Churchill Inc. constructed assets costing £4,200,000. The weighted-average accumulated expenditures on these assets during the year was £2,600,000. Churchill took out a 7% construction loan of £4,000,000 on January 1, 2015, and funds not needed for construction were temporarily invested in short-term securities, yielding £30,000 in interest revenue. Other than the construction loan, the only other debt outstanding during the year was a £2,000,000, 5-year, 9% note payable dated January 1, 2011. What is the amount of interest that should be capitalized by Churchill during 2015? a. £152,000. b. £182,000. c. £280,000. d. £330,000. 27.On January 1, 2015, Le Pavillion Co began construction on assets which cost CHF2,900,000. The-weighted-average accumulated expenditures on these assets during 2011 was CHF1,900,000. To help pay for construction, CHF1,500,000 was borrowed at 9.5% on January 1, 2015. Funds not needed for construction were temporarily invested in short-term securities, Earning CHF79,000 in interest revenue during the year. Other than the construction loan, The only other debt outstanding during the year was a CHF2,750,000, 10-year, 12% note payable Dated May 1, 2012. What is the amount of interest that should be capitalized by Le Pavillion during 2015? 28. During 2015, Bella Corporation constructed assets costing CHF 4,215,000. The weighted Average accumulated expenditures on these assets during 2015 was CHF 3, 900,000. Bella borrowed CHF2, 000,000 at 7.5% on January 1, 2015. Funds not needed for construction Were temporarily invested in short-term securities, and earned CHF59,000 in interest revenue. In addition to the construction loan, Bella had two other notes outstanding during the year: (1) a CHF1,500,000,10-year, 10% note payable dated October 1, 2013, and (2) a CHF1,000,000, 8% note payable dated November 2, 2014.What is the amount of interest that should be capitalized by Bella during 2015? 29. In an exchange with commercial substance, Huang Company traded equipment with a cost of $8,200,000 and book value of $3,120,000 and gave $4,698,000 cash. The old machine had a fair value of $2,960,000. Which of the following journal entries would Huang make to record the exchange? Cash 4,698,000
B Capital accounting learning Intermediate accounting (2) - 13 - Final revision – Part one – Chapter (10&11) – Second grade – second term – 2019/2020 d. Equipment 7,658,000 Accumulated Depreciation 542,000 Equipment 8,200,000
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