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    Janelle101's Avatar
    Janelle101 Posts: 60, Reputation: 1
    Junior Member
    		  
    #1

    Nov 30, 2009, 09:39 AM
    Corporation Capitalize
    Please help me:
    A corporate constructed equipment to manufacture a new line of home products during 2004. The average accumulated expenditures on the equipment during 2004 were $500,000. Construction started on Septembet 1, 2004, and was still in progress at the end of 2004. If the corporation borrowed $500,000 for one year on September 1, 2004, to finance the construction, and the interest rate on the construction loan was 6%, how much interest can the coprporation capitalize as part of the equipment cost for 2004?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #2

    Nov 30, 2009, 07:49 PM

    You've gotten help here before, and should know by now that you are expected to post your attempts at the problem or ask a specific question about what you don't understand.
    Janelle101's Avatar
    Janelle101 Posts: 60, Reputation: 1
    Junior Member
    		  
    #3

    Dec 1, 2009, 07:50 AM

    Its OK our teacher made a mistake we haven't reached here as yet, so I can't show a working I've tried.
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