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1. Messy Company is constructing a building. Construction began on 4/1/19 and the building was completed 12/31/19. Messy made payments to the construction company of
1. Messy Company is constructing a building. Construction began on 4/1/19 and the building was completed 12/31/19. Messy made payments to the construction company of $1,500 on 7/1, $3,150 on 9/1, and $3,000 on 11/1. Messy took out a loan to help pay for this construction on 4/1/19 for $2,000 of which the principle and interest is all due on 4/1/20. The loan has an interest rate of 15%. Other loans that Messy has include 1) $400 5-year loan with a 9% interest that started 1/1/19 and 2) $1,500 3-year loan with a 5% interest that started 1/1/18 Use the following charts if needed and round to two decimal places for interest rates if necessary. a. What is the maximum weighted average accumulated construction expenses that can be capitalized for 2019? 10 points) b. What is the amount of interest expense that is capitalized for 2019?_10 points) c. What is the balance of the Interest Expense account as of 12/31/19 after all adjustments have been made? L10_ points) d. What is the balance of the Building Under Construction account as of 12/31/19 after all adjustments have been made? 10 points)
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