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Interest During Construction Matrix Inc. borrowed $1,100,000 at 8% to finance the construction of a...

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Accounting

Interest During Construction Matrix Inc. borrowed $1,100,000 at 8% to finance the construction of a new building for its own use. Construction began on January 1, 2016, and was completed on October 31, 2016. Expenditures related to this building were: January 1 $258,000 (includes cost of purchasing land of $150,000) May 1 310,000 July 1 420,000 October 31 275,000 In addition, Matrix had additional debt (unrelated to the construction) of $500,000 at 9% and $800,000 at 10%. All debt was outstanding for the entire year.

Required:

1. Compute the amount of interest capitalized related to the construction of the building. $

2. If the expenditures are assumed to have been incurred evenly throughout the year: Compute weighted-average accumulated expenditures $

3. Compute the amount of interest capitalized on the building

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