1.

On January 2, 2020, Marigold Corp. began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows:

January 2, 2020	$ 592000
September 1, 2020	1812000
December 31, 2020	1812000
March 31, 2021	1812000
September 30, 2021	1194000

Marigold Corp. borrowed $3400000 on a construction loan at 12% interest on January 2, 2020. This loan was outstanding during the construction period. The company also had $12360000 in 9% bonds outstanding in 2020 and 2021. The interest capitalized for 2020 was:

$556200

$448480

$143520

$185400

2.

Sheffield Company issues $26400000, 8%, 5-year bonds dated January 1, 2020 on January 1, 2020. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 7%. What are the proceeds from the bond issue?

ff	3.5%	4.0%	7%	8%
Present value of a single sum for 5 periods	0.84197	0.82193	0.71299	0.68058
Present value of a single sum for 10 periods	0.70892	0.67556	0.50835	0.46319
Present value of an annuity for 5 periods	4.51505	4.45182	4.10020	3.99271
Present value of an annuity for 10 periods	8.31661	8.11090	7.02358	6.71008

$27486253

$27490323

$27497828

$26400000