Need some help with the question attached as images, thank you! Question 6 The f

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Need some help with the question attached as images, thank you!

Question 6 The following three situations involve the capitalization of interest. Situation I On January 1, 2014, Oksana Baiul, Inc. signed a fixed-price contract to have Builder Associates construct a major plant facility at a cost of $4,370,000. It was estimated that it would take 3 years to complete the project. Also on January 1, 2014, to finance the construction cost, Oksana Baiul borrowed $4,370,000 payable in 10 annual installments of $437,000, plus interest at the rate of 10%. During 2014, Oksana Baiul made deposit and progress payments totaling $1,638,750 under the contract, the weighted-average amount of accumulate expenditures was $873,999 for the year. The excess borrowed funds were invested in short-term securities, from which Oksana Baiul realized investment income of $255,000. What amount should Oksana Baiul report as capitalized interest at December 31, 2014? (Round answer to the nearest whole dollar, e.g. 5,275.) Capitalized interest s Situation II uation During 2014, Midori Ito Corporation constructed and manufactured certain assets and incurred the following interest costs in connection with those activities Interest Costs Incurred Warehouse constructed for Ito's own use Special-order machine for sale to unrelated customer, produced according to customer's specification:s Inventories routinely manufactured, produced on a repetitive basis $34,400 9,130 8,880 All of these assets required an extended period of time for completion Assuming the effect of interest capitalization is material, what is the total amount of interest costs to be capitalized? The total amount of interest costs to be capitalized $

Explanation / Answer

ANSWER:    

15.77 ± 46.785 = (-31.015, 62.555). Since the range includes 0, there does not appear to be a significant difference between the means of the two groups.

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