ACC 304 All Assignments ACC 304 All Assignments | Page 190
book value of $60,000 and a fair value of $57,000. Boot of $12,000 is
received by Armstrong Co.
What amount should Glen Inc. record for the asset received?
31) Arlington Company is constructing a building. Construction began
on January 1 and was completed on December 31. Expenditures were
$4,800,000 on March 1, $3,960,000 on June 1, and $6,000,000 on
December 31. Arlington Company borrowed $2,400,000 on January 1
on a 5-year, 12% note to help finance construction of the building. In
addition, the company had outstanding all year a 10%, 3-year,
$4,800,000 note payable and an 11%, 4-year, $9,000,000 note payable.
What is the weighted-average interest rate used for interest
capitalization purposes?
32) Arlington Company is constructing a building. Construction began
on January 1 and was completed on December 31. Expenditures were
$4,800,000 on March 1, $3,960,000 on June 1, and $6,000,000 on
December 31. Arlington Company borrowed $2,400,000 on January 1
on a 5-year, 12% note to help finance construction of the building. In
addition, the company had outstanding all year a 10%, 3-year,
$4,800,000 note payable and an 11%, 4-year, $9,000,000 note payable.