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Assume the weighted-average accumulated expenditures

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Assume the weighted-average accumulated expenditures Use the following information for questions 1 through 3. On March 1, 2010, Newton Company purchased land for an office site by paying $540,000 cash. Newton began construction on the office building on March 1. The following expenditures were incurred for construction: Date Expenditures March 1, 2010 $ 360,000 April 1, 2010 504,000 May 1, 2010 900,000 June 1, 2010 1,440,000 The office was completed and ready for occupancy on July 1. To help pay for construction, $720,000 was borrowed on March 1, 2010 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2010 was a $300,000, 12%, 6-year note payable dated January 1, 2010. 1. The weighted-average accumulated expenditures on the construction project during 2010 were a. $384,000. b. $2,934,000. c. $312,000. d. $696,000. 2. The actual interest cost incurred during 2010 was a. $90,000. b. $100,800. c. $50,400. d. $84,000. 3. Assume the weighted-average accumulated expenditures for the construction project are $870,000. The amount of interest cost to be capitalized during 2010 is a. $78,300. b. $82,800. c. $90,000. d. $100,800. 4. During 2010, Bass Corporation constructed assets costing $1,000,000. The weighted-average accumulated expenditures on these assets during 2010 was $600,000. To help pay for construction, $440,000 was borrowed at 10% on January 1, 2010, and funds not needed for construction were temporarily invested in short-term securities, yielding $9,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a $500,000, 10-year, 9% note payable dated January 1, 2004. What is the amount of interest that should be capitalized by Bass during 2010? a. $60,000. b. $30,000. c. $58,400. d. $94,400. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

Assume the weighted-average accumulated expenditures

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