Use the following information for questions 2 through 4. On March 1, 2010, Newto

Question

Use the following information for questions 2 through 4. On March 1, 2010, Newton Company purchased land for an office site by paying $540,000 cash. Newton began construction on the office building on March 1. The following expenditures were incurred for construction: Date Expenditures March 1, 2010 $ 360,000 April 1, 2010 504,000 May 1, 2010 900,000 June 1, 2010 1,440,000 The office was completed and ready for occupancy on July 1. To help pay for construction, $720,000 was borrowed on March 1, 2010 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2010 was a $300,000, 12%, 6-year note payable dated January 1, 2010. 3. The actual interest cost incurred during 2010 was a. $90,000. b. $100,800. c. $50,400. d. $84,000

Explanation / Answer

The actual interest cost incurred during 2010 was A) $90,000.answer

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---