Tenax Therapeutics' (TENX) CEO John Kelley on Q3 2015 Results-Earnings Call Transcript.
Debit the cost of the asset and credit the loan account with the capitalized interest. In the example, debit the asset cost and credit the loan account with $50,000. The asset cost available for depreciation at the end of Year One is therefore $1,050,000. Debit the interest expense account and credit the loan account with any interest paid in excess of the interest capitalized. For example, if the total interest paid in the first year was $75,000, debit the interest expense account and credit the loan account with $75,000 minus $50,000, or $25,000.
EBITA is an acronym for earnings before interest, taxes and amortization. To calculate a company's EBITA, start with its earnings before tax (EBT) , which can be found on the income statement, and add interest and amortization expenses back in.EBITA is a variation of the more commonly used EBITDA, which deducts depreciation expenses.oth measures are sometimes considered indications of cash flow. EBITA = earnings before tax (EBT) + interest expense + amortization expense. Since certain industries require significant investment in fixed assets, EBITDA can distort a company's profitability by ignoring depreciation.