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On June 1,2023, a company began construction of a new manufacturing plant. The plant was...

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Accounting

On June 1,2023, a company began construction of a new manufacturing plant. The plant was completed on October 31,2024. Expenditures on the project were as follows ($ in millions):
July 1,202366
October 1,202334
February 1,202442
April 1,202427
September 1,202426
October 1,202412
On July 1,2023, the company obtained a $88 million construction loan with a 10% interest rate. The loan was outstanding through the end of October, 2024. The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 9%. This note was outstanding during all of 2023 and 2024. The company's fiscal year-end is December 31.
In computing the capitalized interest for 2024, the average accumulated expenditures are:
Multiple Choice
$165.30 million.
$89.30 million.
$146.54 million.
$167.25 million.

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