A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditu

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A Company Constructs A Building For Its Own Use Construction Began On January 1 And Ended On December 30 The Expenditu 1 (37.59 KiB) Viewed 12 times

A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $500,000, March 31, $600,000; June 30, $400,000, October 30, $600,000. To help finance construction, the company arranged a 7% construction loan on January 1 for $700,000. The company's other borrowings, outstanding for the whole year, consisted of a $3 million loan and a $5 million note with interest rates of 8% and 6%, respectively. Assuming the company uses the specific interest method, calculate the amount of interest capitalized for the year. (Do not round intermediate calculations. Round your percentage answers to 2 decimal places (i.e. 0.1234 should be entered as 12.34%).) Date January 11 March 31 June 30 October 30 Accumulated expenditures Average accumulated expenditures Expenditure Amount X x X Weight Interest Rate % 86 = Average Capitalized Interest