I. Multiple Choice ( point cach - 15 15 points) 1. The cost of land typically includes the purchase price and all of the following costs except: a. cost of removing old buildings. b. grading, filling, draining, and clearing costs. c. private driveways and parking lots. d. street lights, sewers, and drainage systems cost. Use the following information for 02. 03.04 Hanson Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $1,800,000 on March 1, $1,200,000 on June 1, and $3,000,000 on December 31. Hanson Company borrowed $1,000,000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $2,000,000 note payable and an 11%, 4-year, S3,000,000 note payable. 2. What is the weighted average accumulated expenditures for interest capitalization purposes? a. $1,650,000 b. $2,000,000 c. $2,200,000 d. $3,000,000 3. What is the weighted average interest rate for interest capitalization purposes? a. 10.50% b. 10.60% c. 10.83% d. 11.00% 4. What is the avoidable interest? a. 221,760 b. 247,200 c. 247,680 d. 264,000