1 Capitalization of Borrowing Costs (12 marks) In February 2024, Sheridan Corp. began the construction of a 10-storey building. The construction is expected to be completed by January 2025. During 2024, the following payments were made: Apr 1 Jun 1 Aug 1 Oct 1 $1,180,000 $1,500,000 $870,000 $920,000 No asset specific debt was incurred. During 2024, Sheridan's general debt consisted of the following uctions New Debt Instruments Outstanding-2024 5%, 2-year note 4.5%, 2-year note 3%, 5-year note Principal Amount $2,100,000 $1,300,000 $900,000 251 15nstructions (a) Calculate the weighted-average accumulated expenditures for the year ended December 31, 2004, do 17 decimal places, eg 5,275. Do not round intermediate calculations.) (4 mark) 18 19 1 0 (b) Calculate the weighted average capitalization rate on Sheridan's general-purpose debt for the year ended December 31, 2024 Round answer to 2 decimal places, e.g. 15.25%.) (4 marks) Calculate the avoidable borrowing costs (found answer to o decimal places, 1,52530 mark (d) Calculate the amount of Sheridan's borrowing costs that should be capitalized. und wer to decimal place 1,525) (2 marks)