On June 1, 2020, the Crocus Company began construction of a new manufacturing plant. The...
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Accounting
On June 1, 2020, the Crocus Company began construction of a new manufacturing plant. The plant was completed on October 31, 2021. Expenditures on the project were as follows ($ in millions):
July 1, 2020
72
October 1, 2020
40
February 1, 2021
48
April 1, 2021
30
September 1, 2021
29
October 1, 2021
15
On July 1, 2020, Crocus obtained a $88 million construction loan with a 10% interest rate. The loan was outstanding through the end of October, 2021. The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 12%. This note was outstanding during all of 2020 and 2021. The company's fiscal year-end is December 31. In computing the capitalized interest for 2021, Crocus' average accumulated expenditures are:
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