Question 11 (1 point) On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures on the project were as follows: January 1, 2018 $300,000 September 1, 2018 $450,000 December 31, 2018 $450,000 March 31, 2019 $450,000 September 30, 2019 $300,000 Dreamworld had $5,000,000 in 12% bonds outstanding through both years. The average accumulated expenditures for 2019 by the end of the construction period was: $1,950,000 $1,554,000. $1.254.000 $975,000 Question 12 (1 point) Interest is not capitalized for: Assets that are constructed as discrete projects for sale or lease. Assets constructed for a company's own use. Inventories routinely and repetitively produced in large quantities. Interest is capitalized for all of these items. Question 13 (1 point) The cost of constructing a new parking lot at the company's office building would be recorded as: Land. Land improvement. Building Equipment Question 14 (1 point) Average accumulated expenditures: Is an approximation of the average debt a firm would have outstanding if it financed all construction through debt. is computed as a simple average if all construction expenditures are made at the end of the period. Are irrelevant if the company's total outstanding debt is less than total costs of construction. All of these answer choices are true statements