- This topic has 0 replies, 1 voice, and was last updated 7 years, 7 months ago by
.
-
Topic
-
interest capitalization
evenly, uniformly
06/30 ====================== 12/31
0 ====================== 100,000100,000 was sped for construction evenly ( uniformly) thought out the year
100,000 * (0/12) + 100,000* (6/12)
the weighted average expenditure during the year = 50,000
this is exactly the same method used for calculation Basic (or diluted) EPS !!!
when problem ask about weighted average expenditure for interest capitalization, think of it as how much expenditure has been out standing during the year!!!
It ain't About How Hard You Hit
- You must be logged in to reply to this topic.
