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Apple Company began constructing a building on January 1, 2019 and was completed on December 31, 2019. Expenditures were as follows: March 1 June 1

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Apple Company began constructing a building on January 1, 2019 and was completed on December 31, 2019. Expenditures were as follows: March 1 June 1 December 31 $1,200,000 $990,000 $1,500,000 Apple Company borrowed $600,000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $1,200,000 note payable and an 11%, 4-year, $2,250,000 note payable. Compute the followings: (i) the weighted average accumulated expenditures. (ii) the avoidable interest for Apple Company. (iii) actual interest for Apple Company. (iv) amount of interest that can be capitalized. (2 marks) (4 marks) (2 marks) (2 marks)

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