On March 1, 2017,Waterway Industriespurchased land for an office site by paying $2660000cash.Waterwaybegan construction on the office building on March 1. The following expenditures were incurred for construction:

DateExpendituresMarch 1, 2017$1750000April 1, 20172490000May 1, 20174580000June 1, 20174730000

The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3660000was borrowed on March 1, 2017 on a9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2017 was a $1590000,12%, 6-year note payable dated January 1, 2017.

Assume the weighted-average accumulated expenditures for the construction project are $4390000. The amount of interest cost to be capitalized during 2017 is

$155100.

$131700.

$417000.

$173400.

2.Sunland Companybuys a delivery van with a list price of $55000. The dealer grants a12% reduction in list price and an additional3% cash discount on the net price if payment is made in 30 days. Sales taxes amount to $950and the company paid an extra $850to have a special device installed. What should be the recorded cost of the van?

$48694.

$46948.

$48748.

$47898.