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A company constructs a building for its own use. Construction began on Jan 1. and ended on Dec. 30. The expenditures for construction were as
- A company constructs a building for its own use. Construction began on Jan 1. and ended on Dec. 30. The expenditures for construction were as follows:
Construction Expenditures
1-Jan 210,000
31-Mar 360,000
30-Jun 470,000
31-Oct 510,000
The company arranged a 5% construction loan on Jan 1 for $660,000. The company also had a $5,000,000, 6.4% note outstanding the whole year
The company uses a specific interest method to capitalize interest. Calculate the total cost of the building, including the capitalized interest.
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