Began construction of new warehouse

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Reference no: EM131496317

On January 1, 2016, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2017. Expenditures on the project were as follows:

January 1, 2016 $313,000

September 1, 2016 $465,000

December 31, 2016 $465,000

March 31, 2017 $465,000

September 30, 2017 $313,000

Dreamworld had $5,500,000 in 15% bonds outstanding through both years.

Dreamworld's capitalized interest in 2016 was:

$93,900.

$46,950.

$81,938.

$70,200.

Reference no: EM131496317

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