The building is missing the interest that would be


The building is missing the interest that would be capitalized during construction.

On the interest schedule, the interest on construction costs is correct, but you incorrectly used 600k as the principal of the note, when interest would be calculated based on the PV that you calculated. Also, the amount of interest that is capitalized would then have to be subtracted from the year's interest expense as it would not be paid as an expense. The lump sum purchase should be weighted between equipment and furniture

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Accounting Basics: The building is missing the interest that would be
Reference No:- TGS02578765

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