Capitalizing Interest

A) On April 1, PC Co. began construction of a small building. Payments of $250,640 were made monthly for four months beginning on April 1.

The building was completed and ready for occupancy on August 1. For the purpose of determining the amount of interest cost to be capitalized, calculate the weighted-average accumulated expenditures on the building.

B) OO Company purchased land as a factory site for $1340000. They paid $115000 to tear down two buildings on the land. Salvage (scrap) was sold for $8000. Legal fees of $5080 were paid for title investigation and making the purchase. Architect's fees were $46200. Title insurance cost $3500, and liability insurance during construction cost $3800. Excavation cost $15660. The contractor was paid $4400000. An assessment made by the city for pavement was $9900. Interest costs during construction were $256000.

The cost of the land that should be recorded by OO Company is ________