Current Attempt in Progress
Riverbed Furniture started construction of a combination office and warehouse building for its own use at an estimated cost of
on January Riverbed expected to complete the building by December Riverbed has the following debt
obligations outstanding during the construction period.
Construction loan interest, payable semiannually, issued December
Shortterm loan interest, payable monthly, and principal payable at maturity on May
a
Assume that Riverbed completed the office and warehouse building on December as planned at a total cost of
The following expenditures were made during the period forthis project: January ; April ;
July ; and October Excess funds from the construction loans were invested during the period and
earned of investment income. Compute the amount of borrowing costs to be capitalized for this project. Use interest
rates rounded to decimal places, eg for computational purposes and round final answers to decimal places, eg
Borrowing costs
