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QUESTION 1 On March 1, 2025, Alvah Company purchased land for an office site by paying $2,700,000 cash. Alvah began construction on the office building
QUESTION 1 On March 1, 2025, Alvah Company purchased land for an office site by paying $2,700,000 cash. Alvah began construction on the office building on March 1 . The followina navments were made for construction: The office was completed and ready for occupancy on July 1 . To help pay for construction, and purchase of land $3,600,000 was borrowed on March 1,2025 on a 9%,3-year note payable. Other than the construction note, the only debt outstanding during 2025 was a $1,500,000,12%,6-year note payable dated January 1, 2025. The actual interest cost incurred during 2025 was$450,000. $504,000. $252,000. $420,000. QUESTION 2 On January 2, 2025, Shaheen Corp. began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30 , 2026. Expenditures for the construction were as follows: Shaheen borrowed $3,300,000 on a construction loan at 12% interest on January 2,2025 . This loan was outstanding during the construction period. The company also had $12,000,000 in 9% bonds outstanding in 2025 and 2026. What were weighted-average accumulated expenditures for 2025? $1,600,000$1,500,000$1,200,000$3,000,000
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