The writer is very fast, professional and responded to the review request fast also. Thank you.
I use 1,026,000*7/12 and 1,710,000*12/12 which turned out to be wrong. can someone give me hint? thank you!
Buffalo Inc. is a book distributor that had been operating in its original facility since 1987. The increase in certification programs and continuing education requirements in several professions hascontributed to an annual growth rate of 15% for Buffalo since 2012. Buffalo’ original facility became obsolete by early 2017 because of the increased sales volume and the fact that Buffalo now carries CDs in addition to books. On June 1, 201?, Buffalo contracted with Black Construction to have a new building constructed for $4,560,000 on land owned by Buffalo. The payments made by Buffalo to Black Construction areshown In the schedule below. Date AlllnllntJuly 30, 2017 $1,025,000January 30, 2018 1310,1100May 30, 2018 1,824,000Total payments $4,560,000 Constmction was completed and the building was ready for occupancy on May 27, 2018. Buffalo had no new borrowings directly associated with the new building but had the followmg debtoutstanding at May 31, 2010, the end of its fiscal year. 10%, 5-year note payable of $2,280,000, dated April 1, 2014, with interest payable annually on April 1.12%, 10-year bond issue of $3,420,000 sold at par on June 30, 2010, with interest payable annually on June 30. The new building qualifies for interest capitalization. The effect of capitalizing the interest on the new building, compared with the effect of expensing the interest, is material. V (a)E] Your answer is incorrect. Try again. Compute the weighted-average accumulated expenditures on Bufi‘alo’s new building during the capitalization period. Weighted-Ave rage Accumulated Expenditures
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