Complete both problems. Show all calculations. Problem 1 (From a


Question Description:

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Please help with the two questions in attachment. show all steps inter acc practice .docx Complete both problems. Show all calculations. Problem 1 (From a previous exam) XYZ’s beginning balance of Assets under Construction was $5 million on January 1, 2011. On July 1, 2011 XYZ paid $2 million more to its contractors and on October 1, they paid an additional $8 million. XYZ has no specific borrowings related to the construction, but has the following loans outstanding unrelated to the construction project: 9% loan from KLM bank borrowed on April 1, 2010 $5 million 15% loan from FGD bank borrowed on Jan 1, 2009 $10 million Required: Show XYZ’s capitalized interest disclosure in the footnotes for the year ended December 31, 2011. Be sure to clearly mention the amount capitalized. Show all calculations. Problem 2 (adapted from a previous exam) Picard Enterprises purchased a spaceship on November 1, 2014 for $260 million. Test runs and weapon system checks costing $60 million were performed to prepare the spaceship for duty. Picard estimates that the ship will last 4 years and can be sold at a salvage value of $80 million. Picard uses the double declining balance method of depreciation for financial reporting and applies the half-year convention to assets placed in service in the middle of a fiscal year. Required: 1. Give Picard’s adjusting journal entry to record depreciation expense for the year ended December 31, 2017. 2. What is the net book value of the spaceship on December 31, 2017?

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