127400 237600 1. Aequire Fixed Assets A. Interest During Construction Hart began construction of a new building last year on July 1, 2017. On the day construction was started the land was appraised at $350,000. It had been purchased 2 years earlier for $200,000 By Dec. 31, 2017 it had spent $600,000 on construction and correctly paid and capitalized interest in the amount of $32,000. 0 0 The following added expenditures were made in 2018 prior to completion of the building on September 1, 2018: 100.000 1217 Date Amount Feb. 1. 2018 840,000 140.000 2 770.000 Aug. 1. 2018 360.000 36.00025713 - 150 000 The following 8% annual interest rate construction loans existed in 2018: Originated Repaid Amount July 1, 2017 Nov. 1. 2018 500.000 400.000 Feb. 1. 2018 Nov. 1. 2018 700,000 700 000 There were $1,000,000 of other (annualized) loans outstanding during 2017 and 2018 at an average annual interest rate of 5%. Calculate the annualized construction expenditures for 2018: Calculate the capitalized interest for 2018: Indicate the following account balances on December 31, 2018 Land Building