Question
On June 1, 2023, a company began construction of a new manufacturing plant. The plant was completed on October 31, 2024. Expenditures on the project
On June 1, 2023, a company began construction of a new manufacturing plant. The plant was completed on October 31, 2024. Expenditures on the project were as follows ($ in millions):
July 1, 2023 | 54 |
October 1, 2023 | 22 |
February 1, 2024 | 30 |
April 1, 2024 | 21 |
September 1, 2024 | 20 |
October 1, 2024 | 6 |
On July 1, 2023, the company obtained a $70 million construction loan with a 6% interest rate. The loan was outstanding through the end of October, 2024. The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 8%. This note was outstanding during all of 2023 and 2024. The company's fiscal year-end is December 31.
In computing the capitalized interest for 2024, the average accumulated expenditures are:
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