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On March 1, 2020, Bramble Corp.purchased land for an office site by paying $2690000 cash. Bramble began construction on the office building on March 1.
On March 1, 2020, Bramble Corp.purchased land for an office site by paying $2690000 cash. Bramble began construction on the office building on March 1. The following expenditures were incurred for construction: Date March 1, 2020 April 1, 2020 May 1, 2020 June 1, 2020 Expenditures $ 1900000 2500000 4520000 4780000 The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3580000 was borrowed on March 1, 2020 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2020 was a $1400000, 12%, 6-year note payable dated January 1, 2020. Assume the weighted average accumulated expenditures for the construction project are $4320000. The amount of interest cost to be capitalized during 2020 is $490200. $411000 $388800. $436500
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