On January 1, 2017, Tolvin Company signed a contract to have Bob's Builders construct a office building at a cost of $30,000,000. It was estimated that it would take four years to complete the project. Also on January 1, 2017, to finance the construction cost, Tolvin borrowed $20,000,000 payable in five annual installments of $4,000,000 plus interest at the rate of 8%. During 2017, Tolvin made
progress payments totaling $5,000,000 under the contract, and the average amount of accumulated expenditures was $6,000,000 for the year. The excess borrowed funds were invested in short-term securities, from which Tolvin realized investment income of $650,000. What amount should Tolvin report as capitalized interest at December 31, 2017?
A) ?$ 400,000
B) ?$ 480,000
C) ?$ 650,000
D) ?$1,600,000
B
You might also like to view...
The way in which we store or retain information is called selective ______.
a. memory b. attention c. exposure d. perception
Toyota's global complementation strategy
A) calls for plants to be devoted to the production of vehicles for only the local market. B) dictates that parts plants be built to supply all of the needs for each vehicle production plant worldwide. C) requires that a single parts plant, for example, for brakes, export brake components to all of its vehicle assembly plants worldwide. D) mandates that plants can produce vehicles for export to markets that remain strong when the local market weakens.
A person who dies without a will is said to have died
a. per stirpes. b. per capita. c. testate. d. intestate.
What is an extended warranty and when should it be purchased on a car?
What will be an ideal response?