Situation III Kingbird, Inc. has a fiscal year ending April 30. n May 1 2017 Kin

Question

Situation III Kingbird, Inc. has a fiscal year ending April 30. n May 1 2017 Kingbird borrowed $9,292,000 at 1 196 to finance construction of its own build ng Repayments of the loan are to commence the month following completion of the building. During the year ended April 30, 2018, expenditures for the partially completed structure totaled $6,504,400. These expenditures were incurred evenly throughout the year. Interest earned on the unexpended portion of the loan amounted to $603,980 for the year How much should be shown as capitalized interest on Kingbird's financial statements at April 30, 2018? Capitalized interest on Kingbird's financial statements Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Interest Amount =6504400*11% = 715484

Interest Earned = 603980

Interest Capitalised = 715484 - 603980 = 111504

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