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

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A Company Constructs A Building For Its Own Use Construction Began On January 1 And Ended On December 30 The Expenditur 1 (28.81 KiB) Viewed 14 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. The company arranged a 7% loan on January 1 for $700,000. Assume the $700.000 loan is not specifically tied to the construction of the building. The company's other borrowings, outstanding for the whole year, consisted of a $3 milion loan and a $5 million note with interest rates of 8% and 6%, respectively Assuming the company uses the weighted average 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%)) January 1, 2021 March 31, 2021 Chate June 30, 2021 October 30, 2021 Accumulated expenditure Average accumulated expenditures Expenditure $ $ Amount 0 x X X x Weight Interest Rate % % Average 5 Capitalized Interest $ $ 0 6 0