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both poctures are same questios Interest Costs During Construction Comprehensive Illustration: On November 1, 2016, Shalla Company contracted Pfeifer Construction Co. to construct a building
both poctures are same questios
Interest Costs During Construction Comprehensive Illustration: On November 1, 2016, Shalla Company contracted Pfeifer Construction Co. to construct a building for $1,400,000 on land costing $100.000 (purchased from the contractor and included in the first payment). Shalla made the following payments to the construction company during 2017 Total January 1 S210,000 March 1 $300,000 May 1 $540,000 December 31 $450,000 Interest Costs During Construction Pfeifer Construction completed the building, ready for occupancy, on December 31, 2017. Shalla had the following debt outstanding at December 31, 2017 $750,000 Specific Construction Debt 1. 15%, 3-year note to finance purchase of land and construction of the building, dated December 31, 2016, with interest payable annually on December 31 Other Debt 2. 10%, 5-year note payable, dated December 31, 2013, with interest payable annually on December 31 3. 12%, 10-year bonds issued December 31, 2012, with interest payable annually on December 31 $550,000 $600,000 Compute weighted average accumulated expenditures for 2017 the actual interest and the avoidable interestStep by Step Solution
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