question 24 25 26

Use the following information for questions 21 through 24. On January 2, 2018, Indian River Groves began construction of a new citrus processing plant. The automated plant was finished and ready for use on construction were as follows: September 30, 2019. Expenditures for the January 2, 2018 September 1, 2018 December 31, 2018 200,000 600,000 600,000 600,000 March 31, 2019 400,000 September 30, 2019 Indian River Groves borrowed 1,100,000 on a construction loan at 12 % interest on January 2, 2018 This loan was outstanding during the construction period. The company also had 4,000,000 in 9% bonds outstanding in 2018 and 2019. 21. What were the weighted-average accumulated expenditures for 2018? E533,333 a. b. 500,000 400,000 C. d. 1,000,000 22. The interest capitalized for 2018 was: 180,000 b. 48,000 a. c. 192,000 d. 60,000 23. What were the weighted-average accumulated expenditures for 2019 by the end of the construction period? 390,000 a. b. 1,635,000 1,986,000 d. 1,386,000 C. 24. The interest capitalized for 2019 was: 124,740 b. 118,305 a. 25,740 C. d. 99,000 25. Which of the following is true of depreciation accounting? It is not a matter of valuation. a. It is part of the matching of revenues and expenses. It retains funds by reducing income taxes and dividends. All of these answer choices are correct. b. C. d. d. All of these answer cmonn Which of the following most accurately reflects the concept of depreciation as used in accounting? The process of charging the decline in value of an economic resource to income in the period in which the benefit occurred. b. The process of allocating the cost of tangible assets to expense in a systematic and rational manner to those periods expected to benefit from the use of the asset. A method of allocating asset cost to an expense account in a manner which closely matches the physical deterioration of the tangible asset involved. d. An accounting concept that allocates the portion of an asset used up during the year to the contra asset account for the purpose of properly recording the fair market value of tangible 26. a. C. assets