The following three situations involve the capitalization of interest.Situation

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The aftercited three situations confound the capitalization of profit.

Situation

I

On January 1, 2017, Blossom, Inc. identified a fixed-price narrow to enjoy Builder Associates form a senior introduce pliancy at a absorb of $4,266,000. It was estimated that it would obtain?} 3 years to finished the device. Also on January 1, 2017, to finance the formion absorb, Blossom pretended $4,266,000 payable in 10 annual installments of $426,600, plus profit at the objurgate of 10%. During 2017, Blossom made pawn and proceeding payments totaling $1,599,750 under the narrow; the weighted-average sum of accumulated expenditures was $853,200 for the year. The surplus pretended funds were invested in short-term securities, from which Blossom realized investment pay of $258,200.

What sum should Blossom news as capitalized profit at December 31, 2017?

Capitalized profit $____________

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