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On April 1, 2022, Wedder Co. began construction of a small building. Payments of $170,000 were made each month for five months beginning on April
On April 1, 2022, Wedder Co. began construction of a small building. Payments of $170,000 were made each month for five months beginning on April 1. The building was completed and ready for occupancy on August 31, 2022. To help pay for construction. $120,000 was borrowed on March 1, 2022 on a 12%, three-year note payable. The only other debt outstanding during the year was a $1,000,000, 8% note issued two years ago. For the purpose of determining the amount of interest cost to be capitalized, calculate the weighted average accumulated expenditures on the building. $ Calculate the amount of interest to be capitalized in the cost of the building. $
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