On January 1, 2020, Sheridan Company purchased land for an office site by paying $2670000...
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Accounting
On January 1, 2020, Sheridan Company purchased land for an office site by paying $2670000 cash. Sheridan began construction on the office building on January 1. The following expenditures were incurred for construction:
| Date | Expenditures | |
| January 1, 2020 | $ 1700000 | |
| April 1, 2020 | 2520000 | |
| May 1, 2020 | 4410000 | |
| June 1, 2020 | 4760000 |
The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3690000 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 $1480000, 12%, 6-year note payable dated January 1, 2020. Assume the weighted-average accumulated expenditures for the construction project are $4370000. The amount of interest cost to be capitalized during 2020 is
$413700.
$454350.
$393300.
$509700.
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