#9 & Please and explain how. The office was completed and...
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Accounting
#9 & Please and explain how.
The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3,600,000 was borrowed on March 1, 2017 on a 9%, 3-year note payable. Oher than the construction note, the only debt outstanding during 2017 was a $1,500,000, 12%, 6-year note payable dated January 1, 2017. 8) The actual interest cost incurred during 2017 was a. $450,000. b. $504,000. c. $252,000. d. $420,000. e. none of the above. 9)Assume the weighted-average accumulated expenditures for the construction project are $4,350,000. The amount of interest cost to be capitalized during 2017 is a. $391,500. b. $414,000. c. $450,000. d. $504,000 e. none of the above
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