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Use the following information to answer question 5 and 6 Dusam Company is constructing a building, Construction began on January 1 and was completed on
Use the following information to answer question 5 and 6 Dusam Company is constructing a building, Construction began on January 1 and was completed on December 31. Expenditures were $2 400,000 on March 1, $1,980,000 on June 1, and $3,ooo,o0o on December 31. Dusam Company borrowed $1,200,000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $2,400,000 note payable and an 11%, 4-year, $4,500,000 note payable, The weighted-average accumulated expenditures and the weighted-average interest rate used for interest capitalization purpose should be 5. C. D. $7.380,000 and 10.5% $3,690,000 and 11% $4,380,000 and 10.85% A. B. $3,155,000 and 10.65% What amount of interest should be charged to interest expense? A. $382,792 B. $735,000 6. C. $526,792 D. $415,192
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