Interest During Construction

Matrix Inc. borrowed $1,000,000 at 8% to finance the construction of a new building for its own use. Construction began on January 1, 2016, and was completed on October 31, 2016. Expenditures related to this building were:

January 1	$252,000	(includes cost of purchasing land of $150,000)
May 1	310,000
July 1	420,000
October 31	276,000

In addition, Matrix had additional debt (unrelated to the construction) of $500,000 at 9% and $800,000 at 10%. All debt was outstanding for the entire year.

Required:

1. Compute the amount of interest capitalized related to the construction of the building.
2. If the expenditures are assumed to have been incurred evenly throughout the year: a) Compute weighted average accumulated expenditures b) Compute the amount of interest capitalized on the building