On March 1, Coronado Industries began construction of a small building. Payments of $814800 were made monthly for three months beginning March 1. The building was completed and ready for occupancy on June 1. In determining the amount of interest cost to be capitalized, the weighted-average accumulated expenditures are

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Business

Janiah Brewer

22 August, 04:24

On March 1, Coronado Industries began construction of a small building. Payments of $814800 were made monthly for three months beginning March 1. The building was completed and ready for occupancy on June 1. In determining the amount of interest cost to be capitalized, the weighted-average accumulated expenditures are

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Izabella Horton · Answer 1

The weighted-average accumulated expenditures = $407400

Explanation:

The weighted-average accumulated expenditures = $814800 (3/12 + 2/12 + 1/12) = $814800 (6/12) = $407400