Reference no: EM132841446
Question - January 1, 2019, Dreamworld Company began construction of new warehouse.
The building was finished and ready for use on September 30, 2020. Expenditures on the project were as follows:
January 1, 2019 - 300,000
September 1, 2019 - 450,000
December 31, 2019 - 450,000
March 31, 2020 - 450,000
September 30, 2020 - 300,000
Dreamworld Company had 5,000,000 in 12% bonds outstanding through both years.
Requirements -
1. Compute for the average accumulated expenditures for the years 2019 and 2020.
2. How much is Dreamworld's capitalized interest in 2019 and 2020?
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