Riverbed Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$2,232,000 on March 1. HK$1,488,000 on June 1, and HK$2,532,000 on December 31. Riverbed Ltd. had outstanding all year a 12%, 5-year, HK$4,960,000 note payable and an 13%, 4-year, HK$ 4,340,000 note payable. Compute the capitalization rate used for borrowing cost capitalization purposes. (Round answer to 2 decimal places, e.g. 7.58%.) Capitalization rate %

Riverbed Ltd. is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were HK$2,232,000 on March 1. HK$1,488,000 on June 1, and HK$2,532,000 on December 31. Riverbed Ltd. had outstanding all year a 12%, 5-year, HK$4,960,000 note payable and an 13%, 4-year, HK$ 4,340,000 note payable. Compute the capitalization rate used for borrowing cost capitalization purposes. (Round answer to 2 decimal places, e.g. 7.58%.) Capitalization rate %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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