[Interest capitalization: Put it into practice LO 9.2] Hanson Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were: Mar-01 2,800,000 Jun-01 1,400,000 Dec-31 1,600,000 Hanson Company borrowed $1,000,000 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $1,800,000 note payable. a. Determine the weighted-average accumulated expenditures qualifying for capitalization of interest cost. b. Determine the avoidable interest incurred during the period. c. Determine the actual interest incurred during the period. d. Determine the total amount of interest cost to be capitalized during the year.

[Interest capitalization: Put it into practice LO 9.2] Hanson Company Is constructing a buiding. Construction began on February 1 and was completed on December 31. Expenditures were: Hanson Company borrowed $1,000,000 on March 1 on a 5 year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%,5-year: s1, 800,000 note payable. a. Determine the weighted-average accumulated expenditures qualifying for capitalization of interest cost. b. Determine the avoidable interest incurred during the period. c. Determine the actual interest incurred during the period. d. Determine the total amount of interest cost to be capitalized during the year