Gradebook ORION Downloadable eTextbook ent CALCULATOR INTER VERSION ·BACK Exerci

Question

Gradebook ORION Downloadable eTextbook ent CALCULATOR INTER VERSION ·BACK Exercise 10-7 Coronado Furniture Company started construction of a combinátion office and warehouse building for its own use at an estimated cost of $5,035,800 on January 1, 2017. Coronado expected to complete the building by December 31, 2017 . Coronado has the following debt obligat tions outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2016 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2018 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on Janu 1, 2021 $1,991,900 1,807,900 i,004,700

Explanation / Answer

Amt Int rate Interest for 10 months Specific loan 1991900 13% 215789 Non specific loan $1,841,000 10.38% 159247 3832900 Interest 375036 weighted avg interest Amt Int rate Interest for 12 months Short Term loan 1607900 10% 160790 Long Term Loan 1004700 11% 110517 2612600 271307 weighted int rate 10.38 ANS 1 Avoidable Interest 375036 ans 2 SLM dep=(5186100+375036-301600)/30 175318 If if we take total cost as 5035800 than dep is SLM dep=(5035800+375036-301600)/30 170308 If any doubt please comment

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