Use the following information for questions 78 through 80.

On March 1, 2012, Newton Company purchased land for an office site by paying $900,000 cash. Newton began construction on the office building on March 1. The following expenditures were incurred for construction:

Date Expenditures

March 1, 2012 $ 600,000

April 1, 2012 840,000

May 1, 2012 1,500,000

June 1, 2012 2,400,000

The office was completed and ready for occupancy on July 1. To help pay for construction, $1,200,000 was borrowed on March 1, 2012 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2012 was a $500,000, 12%, 6-year note payable dated January 1, 2012.

78. The weighted-average accumulated expenditures on the construction project during 2012 were

a. $640,000.

b. $4,890,000.

c. $520,000.

d. $1,160,000.

79. The actual interest cost incurred during 2012 was

a. $150,000.

b. $168,000.

c. $84,000.

d. $140,000.

80. Assume the weighted-average accumulated expenditures for the construction project are $870,000. The amount of interest cost to be capitalized during 2012 is

a. $130,500.

b. $138,000.

c. $150,000.

d. $168,000.