On June 1, 2020, the Crocus Company began construction of a new manufacturing plant. The plant was completed on October 31, 2021. Expenditures on the project were as follows ($ in millions):

July 1, 2020	92
October 1, 2020	60
February 1, 2021	68
April 1, 2021	40
September 1, 2021	39
October 1, 2021	25

On July 1, 2020, Crocus obtained a $127 million construction loan with a 10% interest rate. The loan was outstanding through the end of October, 2021. The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 12%. This note was outstanding during all of 2020 and 2021. The company's fiscal year-end is December 31. What is the amount of interest that Crocus should capitalize in 2021, using the specific interest method? (Enter your answers to nearest whole dollar amount.)

Multiple Choice

$23,774,000.

$23,809,000.

$25,266,000.

None of these answer choices are correct.

On January 1, 2021, Kendall Inc. began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2022. Expenditures on the project were as follows:

January 1, 2021	$	232,000
September 1, 2021	$	324,000
December 31, 2021	$	324,000
March 31, 2022	$	324,000
September 30, 2022	$	232,000

Kendall borrowed $758,000 on a construction loan at 10% interest on January 1, 2021. This loan was outstanding throughout the construction period. The company had $4,540,000 in 10% bonds payable outstanding in 2021 and 2022. Interest (using the specific interest method) capitalized for 2022 was:

Multiple Choice

$102,570.

$84,750.

$85,820.

$56,850.

A company incurred the following costs related to research and development (R&D) for the current year:

R&D salaries	$	136,000
R&D supplies consumed		256,000
Equipment used in R&D projects		616,000
Payment for services to others for R&D projects		176,000
Purchase of in-process R&D in a business acquisition		96,000

The equipment will be used in other projects. Depreciation in the current year is $86,000. For what amount should the company report research and development expense?