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Tried everything please help 3 A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The
Tried everything please help
3 A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $640,000; March 31, $740,000; June 30, $540,000; October 30, $1,020,000. The company arranged a 9% loan on January 1 for $980,000. Assume the $980,000 loan is not specifically tied to the construction of the building. The company's other borrowings, outstanding for the whole year, consisted of a $4 million loan and a $6 million note with interest rates of 11% and 8%, respectively. pints Assuming the company uses the weighted-average method, calculate the amount of interest capitalized for the year. (Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e. 0.1234 should be entered as 12.34%).) Answer is not complete. Date Weight 12/12 9/12 January 1, 2021 March 31, 2021 June 30, 2021 October 30, 2021 Accumulated expenditures Expenditure $ 640,000 740,000 540,000 1,020,000 $ 2,940,000 Average $ 640,000 555,000 270,000 170,000 $ 1,635,000 6/12 2/12 Amount Interest Rate Capitalized Interest $ 1,635,000 Average accumulated expenditures All loans 9.20 X % $ 0 9.20 % 0 $ 0Step by Step Solution
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