On March 1, 2014, Newton Company purchased land for an office site by paying $1,800,000 cash. Newton began construction on the office building on March 1. The following expenditures were incurred for construction: Date Expenditures
March 1, 2014 $ 1,200,000
April 1, 2014 1,680,000
May 1, 2014 3,000,000
June 1, 2014 4,800,000
The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $2,400,000 was borrowed on March 1, 2014 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2014 was a $1,000,000, 12%, 6-year note payable dated January 1, 2014.
a) The weighted-average accumulated expenditures on the construction project during 2014 were
b) The actual interest cost incurred during 2014 was
c) Assume the weighted-average accumulated expenditures for the construction project are $2,900,000. The amount of interest cost to be capitalized during 2014 is