Edith Industries constructed a building during the current year. The building was constructed on land that was purchased on January 1 at a cost of $200,000. Edith immediately began preparing the land for construction by clearing it. Construction of the building began on January 2 and was completed on December 31. The payments to the building contractor were as follows:

Date	Payment
February 1	$600,000
June 30	450,000
September 1	450,000
November 1	300,000
December 31	100,000

To finance construction of the building, Edith Company took out a $1,000,000, 9% construction loan on January 1. Edith repaid the loan in full, including all interest, on December 31. Edith had $500,000 of other outstanding long-term debt during the year at a borrowing rate of 8%.

Required:

Determine the Weighted Average Accumulated Expenditures (WAAE) during the year.

Determine the actual interest incurred during the year.

Determine the avoidable interest. How much interest can be capitalized?

Record all journal entries related to the acquisition of this asset. Include the journal entries related to the construction loan, as well as the adjusting entry to recognize interest expense for the year.

What is the balance in the Land account at the end of the year? What is the total balance in the Building account? How much is Interest Expense for the year?