What were the weighted-average accumulated expenditures

Reference no: EM131881692

Assignment

On January 2, 2017, Indian River Groves began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2018. Expenditures for the construction were as follows:

January 2, 2017	$ 600,000
September 1, 2017	1,800,000
December 31, 2017	1,800,000
March 31, 2018	1,800,000
September 30, 2018	1,200,000

Indian River Groves borrowed $3,300,000 on a construction loan at 12% interest on January 2, 2017. This loan was outstanding during the construction period. The company also had $12,000,000 in 9% bonds outstanding in 2017 and 2018.

1. What were the weighted-average accumulated expenditures for 2017?

a. $1,600,000

b. $1,500,000

c. $1,200,000

d. $3,000,000

2. The interest capitalized for 2017 was:

a. $540,000

b. $144,000

c. $456,000

d. $180,000

3. What were the weighted-average accumulated expenditures for 2018 by the end of the construction period?

a. $1,170,000

b. $4,905,000

c. $5,958,000

d. $4,158,000

4. The interest capitalized for 2018 was:

a. $374,220

b. $354,915

c. $ 77,220

d. $297,000.

Reference no: EM131881692

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