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On March 1, Mocl Co. began construction of a small building. The following expenditures were incurred for construction: March 1 $227,880 April 1 219,600 May 1 537,000 June 1 804,600 July 1 301,320 The building was completed and occupied on July 1. To help pay for construction $148,440 was borrowed on March 1 on a 12%, three-year note payable. The only other debt outstanding during the year was a $2,000,000, 10% note issued two years ago.

Calculate the weighted-average accumulated expenditures. (Do not leave any answer field blank. Enter 0 for amounts.) Date Expenditures Capitalization Period Weighted-Average Accumulated Expenditure March 1 $227,880 $ April 1 219,600 May 1 537,000 June 1 804,600 July 1 301,320 $

Calculate avoidable interest. (Round answer to 0 decimal places, e.g. 12,515.) Avoidable interest $

Ivanhoe Co. purchased for $2,446,000 property that included both land and a building to be used in operations. The sellers book value was $266,000 for the land and $958,000 for the building. By appraisal, the fair value was estimated to be $802,116 for the land and $2,062,584 for the building. At what amount should Ivanhoe report the land and the building at the end of the year? (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places e.g. 58,971.)

Cost allocated to land		$
Cost allocated to building

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