Vaughn Inc. is a book distributor that had been operating in its original facility since 1987. The increase in certification programs and continuing education requirements in several professions has contributed to an annual growth rate of 15% for Vaughn since 2012. Vaughn original facility became obsolete by early 2017 because of the increased sales volume and the fact that Vaughn now carries CDs in addition to books.

Vaughn Inc. is a book distributor that had been operating in its original facility since 1987. The increase in certification programs and continuing education requirements in several professions has contributed to an annual growth rate of 15% for Vaughn since 2012. Vaughn, original facility became obsolete by early 2017 because of the increased sales volume and the fact that Vaughn now carries CDs in addition to books On June 1, 2017, Vaughn contracted with Black Construction to have a new building constructed for $5,200,000 on land owned by Vaughn. The payments made by Vaughn to Black Construction are shown in the schedule below Date July 30, 2017 January 30, 2018 May 30, 2018 $1,170,000 1,950,000 2,080,000 $5,200,000 Total payments Construction was completed and the building was ready for occupancy on May 27, 2018. Vaughn had no new borrowings directly associated with the new building but had the following debt outstanding at May 31, 2018, the end of its fiscal year 10%, 5-year note payable of $2,600,000, dated April 1, 2014, with interest payable annually on April 1. 12%, 10-year bond issue of $3,900,000 sold at par on June 30, 2010, with interest payable annually on June 30. The new building qualifies for interest capitalization. The effect of capitalizing the interest on the new building, compared with the effect of expensing the interest, is material Compute the weighted-average accumulated expenditures on Vaughn's new building during the capitalization period Weighted-Average Accumulated Expendituress