Number 2
Building Cost 2,500,000.00
Year 20x3 2,000,000.00
Borrowing rate for 20x3 12%
Interest incurred for 20x3 102,000.00
Average Expenditure 2,000,000.00
Borrowing rate 12%
Capitalized Interest 240,000.00
Number 4
1-Jan 50,000.00
1-Jun 60,000.00
1-Dec 90,000.00
Total Accumulated expenditure 200,000.00
Number 5
Captalization rate 0.1083
Number 6
Capitalization rate 0.10
Number 7
Buildding cost 5,000,000.00
Incurred in 20x1 4,000,000.00
Borrowing cost 12%
interest imcurred in 20x1 20,400.00
Ave expenditure 4,000,000.00
Borrowing Cost 12%
Capitalized Interest 480,000.00
Number 8
Borrowed with 10% note payable 400,000.00
Other debt 600,000.00
Mortage 72,000.00
Accumulated Expenditure 475,000.00
Specific Borrowing
Interest expense 40,000.00
Borrowing Cost on Specific Borrowing 40,000.00
General Borrowing
Accumulated Expenditure 475,000.00
Less Specific borrowing 400,000.00
Average expenditure 75,000.00
Capitalization rate 12%
Borrowing Cost on General Borrowing 9,000.00
TOTAL BORROWING COST 49,000.00
Number 9
Balance in Cunstruction Progress 30,000.00
Accumulated expenditure 80,000.00
Interest bearing debt 300,000.00
Weighted Ave 9%
Capitalization in first 2 years 6,000.00
Expenditure 80,000.00
Add: Balance in Construction 30,000.00
Ave Expeniture 110,000.00
Weighted Ave 9%
TOTAL BORROWING COST 9,900.00
Number 10
Ave Accumulated expenditure 250,000.00
Ending balance for construction 360,000.00
6% note incurred specifically in progress 150,000.00
9% long term note 500,000.00
Capitalization Rate 0.09
Specific Borrowing
Interest Expense 9,000.00
Borrowing cost on specific Borrowing 9,000.00
General Borrowing
Expenditure 250,000.00
less: Specific Borrowing 150,000.00
Average Expenditure 100,000.00
Multiply:Captalization Rate 0.09
Borrowing Cost on General Borrowing 9,000.00
TOTAL BORROWING COST 18,000.00
2.)
Building Cost 2,500,000.00
Year 20x3 2,000,000.00
Borrowing rate for 20x3 12%
Interest incurred for 20x3 102,000.00
Average Expenditure 2,000,000.00
Borrowing rate 12%
Capitalized Interest 240,000.00
3.)
4.)
1-Jan 50,000.00
1-Jun 60,000.00
1-Dec 90,000.00
Total Accumulated expenditure 200,000.00
5.)
Captalization rate 10.83%
6.)
Captalization rate 10.00%
7.)
Buildding cost 5,000,000.00
Incurred in 20x1 4,000,000.00
Borrowing cost 12%
interest imcurred in 20x1 20,400.00
Ave expenditure 4,000,000.00
Borrowing Cost 12%
Capitalized Interest 480,000.00
8.)
Borrowed with 10% note payable 400,000.00
Other debt 600,000.00
Mortage 72,000.00
Accumulated Expenditure 475,000.00
Specific Borrowing
Interest expense 40,000.00
Borrowing Cost on Specific Borrowing 40,000.00
General Borrowing
Accumulated Expenditure 475,000.00
Less Specific borrowing 400,000.00
Average expenditure 75,000.00
Capitalization rate 12%
Borrowing Cost on General Borrowing 9,000.00
TOTAL BORROWING COST 49,000.00
9.)
Balance in Cunstruction Progress 30,000.00
Accumulated expenditure 80,000.00
Interest bearing debt 300,000.00
Weighted Ave 9%
Capitalization in first 2 years 6,000.00
Expenditure 80,000.00
Add: Balance in Construction 30,000.00
Ave Expeniture 110,000.00
Weighted Ave 9%
TOTAL BORROWING COST 9,900.00
10.)
Ave Accumulated expenditure 250,000.00
Ending balance for construction 360,000.00
6% note incurred specifically in progress 150,000.00
9% long term note 500,000.00
Capitalization Rate 0.09
Specific Borrowing
Interest Expense 9,000.00
Borrowing cost on specific Borrowing 9,000.00
General Borrowing
Expenditure 250,000.00
less: Specific Borrowing 150,000.00
Average Expenditure 100,000.00
Multiply:Captalization Rate 0.09
Borrowing Cost on General Borrowing 9,000.00
TOTAL BORROWING COST 18,000.00
