Answer:
the expenditures are missing, so I looked for a similar question:
- 1/2/2014 $400,000
- 7/1/2014 $1,200,000
- 12/31/2014 $1,200,000
- 3/31/2015 $1,200,000
- 9/30/2015 $800,000
Weighted average expenditures for 2014:
January 1 = $400,000 x 1 = $400,000
July 1 = $1,200,000 x 1/6 = $600,000
December 31 = $1,200,000 x 0 = $0
total = $1,000,000
Since the company borrowed $2,200,000 specifically for this construction project, then capitalized interests = $1,000,000 x 12% = $120,000
