Determine the crocus average accumulated expenditures

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Question - On June 1, 2020, the Crocus Company began construction of a new manufacturing plant. The plant was completed on October 31, 2021. Expenditures on the project were as follows ($ in millions):

July 1, 2020

58

October 1, 2020

26

February 1, 2021

34

April 1, 2021

23

September 1, 2021

22

October 1, 2021

8

On July 1, 2020, Crocus obtained a $76 million construction loan with a 8% interest rate. The loan was outstanding through the end of October, 2021. The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 10%. This note was outstanding during all of 2020 and 2021. The company's fiscal year-end is December 31.

In computing the capitalized interest for 2021, determine the Crocus' average accumulated expenditures?

Reference no: EM133117146

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