Question
On January 2, 2014, Indian River Groves began construction of a new citrus processing plant. The automated plant was finished and ready for use on
On January 2, 2014, Indian River Groves began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2015. Expenditures for the construction were as follows:
January 2, 2014 | $ 400,000 |
September 1, 2014 | 1,200,000 |
December 31, 2014 | 1,200,000 |
March 31, 2015 | 1,200,000 |
September 30, 2015 | 800,000 |
Indian River Groves borrowed $2,200,000 on a construction loan at 12% interest on January 2, 2014. This loan was outstanding during the construction period. The company also had $8,000,000 in 9% bonds outstanding in 2014 and 2015. What were the weighted-average accumulated expenditures for 2015 by the end of the construction period?
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