On January 1, 2020, Coronado Industries purchased land for an office site by paying $2710000...
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On January 1, 2020, Coronado Industries purchased land for an office site by paying $2710000 cash. Coronado began construction on the office building on January 1. The following expenditures were incurred for construction:
| Date | Expenditures | |
| January 1, 2020 | $ 1780000 | |
| April 1, 2020 | 2540000 | |
| May 1, 2020 | 4500000 | |
| June 1, 2020 | 4760000 |
The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3640000 was borrowed on January 1, 2020 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2020 was a $1510000, 12%, 6-year note payable dated January 1, 2020. Assume the weighted-average accumulated expenditures for the construction project are $4350000. The amount of interest cost to be capitalized during 2020 is
$454200.
$391500.
$508800.
$412800.
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