On January 2, 2017, Indian River Groves began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2018. Expenditures for the construction were as follows:

Indian River Groves borrowed $3,300,000 on a construction loan at 12% interest on January 2, 2017. This loan was outstanding during the construction period. The company also had $12,000,000 in 9% bonds outstanding in 2017 and 2018.

1. What were the weighted-average accumulated expenditures for 2017?

A. $1,600,000

B. $1,500,000

C. $1,200,000

D. $3,000,000

2. The interest capitalized for 2017 was:

A. $540,000

B. $144,000

C. $456,000

D. $180,000

3. What were the weighted-average accumulated expenditures for 2018 by the end of the construction period?

A. $1,170,000

B. $4,905,000

C. $5,958,000

D. $4,158,000

4. The interest capitalized for 2018 was:

A. $374,220

B. $354,915

C. $ 77,220

D. $297,000

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January 2, 2017 September 1, 2017 December 31, 2017 March 31, 2018 September 30, 2018 $ 600,000 1,800,000 1,800,000 1,800,000 1,200,000 January 2, 2017 September 1, 2017 December 31, 2017 March 31, 2018 September 30, 2018 $ 600,000 1,800,000 1,800,000 1,800,000 1,200,000