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Please show all work, thank you! On March 1, 2017, Newton Company purchased land for an office site by paying $2,700,000 cash Newton began construction
Please show all work, thank you!
On March 1, 2017, Newton Company purchased land for an office site by paying $2,700,000 cash Newton began construction on the office building on March 1. The following expenditures were incurred for construction Date Expenditures 1,800,000 2,520,000 4,500,000 4,800,000 March 1, 2017 April 1, 2017 May 1, 2017 June 1, 2017 The office was completed and ready for occupancy on December 31. To help pay for construction, and purchase of land $3,600,000 was borrowed on March 1, 2017 on a 996, 3-year note payable Other than the construction note, the only debt outstanding during 2017 was a $1,500,000, 12%, 6-year note payable dated January 1, 2017. The actual interest cost incurred during 2017 was a. $450,000 b. $504,000 c. $252,000 d. $420,000Step by Step Solution
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