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DanielleElmas [232]
3 years ago
10

Sandhill Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures wer

e $1,884,000 on March 1, $1,284,000 on June 1, and $3,082,450 on December 31. Compute Sandhill’s weighted-average accumulated expenditures for interest capitalization purposes.
Business
1 answer:
Alla [95]3 years ago
8 0

Answer:

$2,319,000

Explanation:

Amount

March1 $1,884,000

June 1 $1,284,000

Dec 31 $3,082,450

Capitalization period

March1

10/12×$1,884,000 =$1,570,000

June 1

7/12 $1,284,000=$749,000

Dec 31

0

Weighted Average Accumulated expenditure

March 1 $1,570,000

June1 $749,000

Dec 31 $0

Total $2,319,000

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