Question 1 25 pts On March 1, 2020, The Hub Corp purchased land for an office site by paying $2,500,000 cash. Hub Corp began construction on the office building on March 1, 2030. The following expenditures were incurred for construction: Date Expenditures 3/1/20 $1,800,000 6/1/20 $2,520,000 8/1/20 $4,500,000 10/31/20 $4,800,000 The office was completed and ready for occupancy on November 1, 2019. (Construction period was March 1 - October 31, which is eight months.) To help pay for construction $3,600,000 was borrowed on March 1 on a 9%,3 year-note payable. Other than the construction note, the only debt outstanding during 2020 was a $1,500,000, 12%, 6-year note payable dated January 1, 2020. Instructions: (1.) Calculate weighted average expenditures (2.) Determine avoidable interest (3.) Prepare journal entry to record 2020 interest costs/expense (4.) Determine total capitalized cost of the building Question 1 25 pts On March 1, 2020, The Hub Corp purchased land for an office site by paying $2,500,000 cash. Hub Corp began construction on the office building on March 1, 2030. The following expenditures were incurred for construction: Date Expenditures 3/1/20 $1,800,000 6/1/20 $2,520,000 8/1/20 $4,500,000 10/31/20 $4,800,000 The office was completed and ready for occupancy on November 1, 2019. (Construction period was March 1 - October 31, which is eight months.) To help pay for construction $3,600,000 was borrowed on March 1 on a 9%,3 year-note payable. Other than the construction note, the only debt outstanding during 2020 was a $1,500,000, 12%, 6-year note payable dated January 1, 2020. Instructions: (1.) Calculate weighted average expenditures (2.) Determine avoidable interest (3.) Prepare journal entry to record 2020 interest costs/expense (4.) Determine total capitalized cost of the building