Cavalli Co. built a warehouse during years 2 and 3. The following payments were made during construction for building materials, labor, and overhead.

January 1, Year 2	April 1, Year 2	October 1, Year 2	January 15, Year 3
$130,000	$240,000	$200,000	$350,000

In addition, Cavalli Co.:

Borrowed $300,000 at 12% on January 1, Year 2, under a 2-year construction note

Had bonds outstanding of $100,000 at 10%, on January 1, Year 2; interest is payable annually on December 31

Had notes payable outstanding of $300,000 at 7% on January 1, Year 2; interest is payable annually on December 31

Completed construction on the building, which was ready for immediate use on March 1, Year 3

Complete Cavalli's construction interest capitalization sheet using the information above. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive values. Round all amounts to the nearest dollar. If no entry is necessary, enter a zero (0). Do not enter any decimal points.

What is the:

The weighted average accumulated expenditures for Year 3.
The interest capitalized for Year 3.

Answer rating: 100% (QA)

To determine the weighted average accumulated expenditures for Year 3 we need to calculate the avera... View the full answer