On March 1, 2020, Bramble Corp. purchased land for an office site by paying $2730000...
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Accounting
On March 1, 2020, Bramble Corp. purchased land for an office site by paying $2730000 cash. Bramble began construction on the office building on March 1. The following expenditures were incurred for construction:
Date Expenditures
March 1, 2020 $1810000
April 1, 2020 2560000
May 1, 2020 4420000
June 1, 2020 4770000
The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3610000 was borrowed on March 1, 2020 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2020 was a $1490000, 12%, 6-year note payable dated January 1, 2020.
The actual interest cost incurred during 2020 was
$251850.
$503700.
$419750.
$449550.
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