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On December 31, 2009, Hurston Inc. borrowed $3,000,000 at 12% payable annually to finance the construction of a new building. In 2010, the company made
On December 31, 2009, Hurston Inc. borrowed $3,000,000 at 12% payable annually to finance the construction of a new building. In 2010, the company made the following expenditures related to this building: March 1, $360,000; June 1, $600,000; July 1, $1,500,000; December 1, $1,200,000. Additional information is provided as follows. Determine the amount of weighted average accumulated expenditure in 2010 in relation to the construction of the building. Determine the amount of interest to be capitalized in 2010 in relation to the construction of the building. Determine the total actual interest expenses incurred in year 2010
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