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  1. business
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  3. a company constructs a building for its own use. c

A company constructs a building for its own use. Construction began on January 1 and...

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Accounting

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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, $610,000; March 31, $710,000; June 30, $510,000; October 30, $930,000. The company arranged a 10% loan on January 1 for $920,000. Assume the $920,000 loan is not specifically tied to the construction of the building. The company's other borrowings, outstanding for the whole year, consisted of a $2 million loan and a $4 million note with interest rates of 12% and 9%, 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 answer to 2 decimal places (i.e. 0.1234 should be entered as 12.34%).) Date Expenditure Weight Average January 1, 2021 March 31, 2021 June 30, 2021 October 30, 2021 Accumulated expenditures Capitalized Interest Average Interest Rate Average accumulated expenditures %

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