Answer:
1. What were the weighted-average accumulated expenditures for 2020?
$600,000 x 12/12 (from January to December) = $600,000
<u>$1,800,000 x 4/12 (from October to December) = $600,000 </u>
total $1,200,000
2. The interest capitalized for 2020 was:
$1,200,000 x 12% = $144,000
3. What were the weighted-average accumulated expenditures for 2021 by the end of the construction period?
$600,000 x 9/12 (from January to September) = $450,000
$1,800,000 x 9/12 (from January to September) = $1,350,000
$1,800,000 x 9/12 (from January to September) = $1,350,000
$144,000 x 9/12 (from October to December) = $108,000
<u>$1,800,000 x 6/12 (from April to September) = $900,000 </u>
total $4,158,000
4. The interest capitalized for 2021 was:
$3,300,000 x 12% x 9/12 = $297,000
<u>($4,158,000 - $3,300,000) x 9% x 9/12 = $57,915</u>
total $354,915
