Intermediate Accounting Chapter 10 Exercise and Brief Exercises

CHAPTER 10
SOLUTIONS TO BRIEF EXERCISES

BRIEF EXERCISE 10-1

$27,000 + $1,400 + $10,200 = $38,600

BRIEF EXERCISE 10-2

|Expenditures | | | | |
| | | | |Capitalization Period | |Weighted-Average Accumulated Expenditures |
|Date | |Amount | | | | |
|3/1 | |$1,800,000 | |10/12 | |$1,500,000 |
|6/1 | | 1,200,000 | | 7/12 | | 700,000 |
|12/31 | | 3,000,000 | |0 | | 0 |
| | |$6,000,000 | | | |$2,200,000 |

BRIEF EXERCISE 10-3

| |Principal | |Interest |
|10%, 5-year note |$2,000,000 | |$200,000 |
|11%, 4-year note | 3,500,000 | | 385,000 |
| |$5,500,000 | |$585,000 |

|Weighted-average interest rate = |$585,000 |= 10.64% |
| |$5,500,000 | |

BRIEF EXERCISE 10-4