How much capitalized interest-scofields financial statements


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Q: Use the partial year depreciation rule. 30. Schofield Inc., has a fiscal year ending April 30. On May 1 2002, Schofield, Inc. borrowed $10,000,000 at 15% to finance construction of its own building. Repayments of the loan are to commence the month following completion of the building. During the year ended April 30, 2003, expenditures for the partially completed structure totaled $6,000,000. These expenditures were incurred evenly through out the year. Interest earned on the unexpended portion of the loan amounted to $400,000 for the year. How much should be shown as capitalized interest on Scofields financial statements at April 30, 2003?

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Financial Accounting: How much capitalized interest-scofields financial statements
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