Question 1 On March 1, 2020, Waterway Industries purchased land for an office site by paying $2650000 cash. Waterway 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 $1740000 2490000 4470000 4740000 The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3570000 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 $1510000, 12%, 6-year note payable dated January 1, 2020. The actual interest cost incurred during 2020 was $502500 $448950. $251250 $418750