On January 2, 2019, Indian River Groves began construction of a new citrus processing plant. The automated plant was finished and ready for use on December 31, 2019. Expenditures for the construction were as follows:

January 2, 2019	$ 400,000
September 1, 2019	1,200,000
December 31, 2019	1,200,000

Indian River Groves borrowed $1000,000 on a construction loan at 12% interest on January 2, 2019. This loan was

outstanding during the construction period. The company also had $8,000,000 in 9% bonds outstanding in 2019.

1- What were the weighted-average accumulated expenditures for 2019?

a. $1,066,667

b. $1,000,000

c. $800,000

d. $2,000,000

2- The interest capitalized for 2019 was:

a. $360,000

b. $96,000

c. $304,000

d. $120,000