$$ Use the following information to answer questions $98-102.$

Arlington 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 $3,000,000$ on December $31.$ Arlington 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.

$98.$ What are the weighted$-$average accumulated expenditures?

a$.4,380,000$

b$.3,155,000$

c$.7,380,000$

d$.3,690,000$

Ans: b

LO: $2$

Bloom: AN

Difficulty: Hard

Min: $2-4$

AACSB: Analytic

AICPA BB: Strategic$/$Critical Thinking

AICPA FN: Measurement

AICPA PC: Problem Solving and Decision$-$making

IMA: None

$99.$ What is the weighted$-$average interest rate used for capitalization of borrowing cost purposes?

a$.,11\%$

b$.,10\mathrm{.}85\%$

c$.,10\mathrm{.}5\%$

d$.,10\mathrm{.}65\%$

Ans: d

LO: $2$

Bloom: AN

Difficulty: Hard

Min: $2-4$

AACSB: Analytic

$100.$ What is the avoidable interest for Arlington Company?

a$.144,000$

b$.463,808$

c$.164,281$

d$.352,208$

Ans: d

LO: $2$

Bloom: AN

Difficulty: Hard

Min: $2-4$

AACSB: Analytic

AICPA BB: Strategic$/$Critical Thinking

AICPA FN: Measurement

AICPA PC: Problem Solving and Decision$-$making IMA: None

$101.$ What is the actual interest for Arlington Company?

a$.879,000$

b$.891,000$

c$.735,000$

d$.$

$352,208$

Ans: a

LO: $2$

Bloom: AN

Difficulty: Hard

Min: $2-4$

AACSB: Analytic

AICPA BB: Strategic$/$Critical Thinking

AICPA FN: Measurement

AICPA PC: Problem Solving and Decision$-$making

IMA: None

$102.$ What amount of interest should be charged to expense?

a$.382,792$

b$.735,000$

c$.526,792$

d$.415,192$

Ans: c