ment CALCULATOR FULL SCREEN PRINTEE VERSION BACK NEXT Problem 10-07 (Part Level Submission) Sunland Inc. is a book distributor that had been operating in its original facility since 1990. The increase in certification programs and continuing education requirements in several professions has contributed to an annual growth rate of 15% for Sunland since 2015. Sunland original facility became obsolete by early 2020 because of the Increased sales volume and the fact that Sunland now carries CDs in addition to books On June 1, 2020, Sunand contracted with Black Construction to have a new building constructed for $4,240,000 on land owned by Sunland. The payments made by Sunland to Black Construction are shown in the schedule below Date Amount July 30, 2020 $954,000 January 30, 2021 1.590,000 May 30, 2021 1,696,000 Total payments $4,240.000 Construction was completed and the building was ready for occupancy on May 27, 2021. Sunland had no new borrowings directly associated with the new building but had the following debt outstanding at May 31, 2021, the end of its fiscal year. 10%, 5-year note payable of $2,120,000, dated April 1, 2017, with interest payable annually on April 1. 12%, 10-year bond issue of $3,180,000 sold at par on June 30, 2013, with interest payable annually on June 30 The new building is for interest capitalization. The effect of capitalizing the interest on the new building compared with the effect of expensing the interestis material CALCULATOR FULL SCREEN PRINTER VERSION HACK NEXT CES Problem 10-07 (Part Level Submission) Sunland Inc. is a book distributor that had been operating in its original facility since 1990. The increase in certification programs and continuing education requirements in several professions has contributed to an annual growth rate of 15% for Sunland since 2015. Sunland' original facility became obsolete by early 2020 because of the increased sales volume and the fact that Sunland now carries CDs in addition to books On June 1, 2020, Sunland contracted with Black Construction to have a new building constructed for $4,240,000 on land owned by Sunland. The payments made by Sunland to Black Construction are shown in the schedule below. Date Amount July 30, 2020 $954,000 January 30, 2021 1,590,000 May 30, 2021 1,695,000 Total payments $4,240,000 Construction was completed and the building was ready for occupancy on May 27, 2021. Sunland had no new borrowings directly associated with the new building but had the following debt outstanding at May 31, 2021, the end of its fiscal year. 10%, 5-year note payable of $2,120,000, dated April 1, 2017, with interest payable annually on April 1 12%, 10-year bond issue of $3,180,000 sold at par on June 30, 2013, with interest payable annually on June 30. The new building qualities for interest capitalisation. The effect of capitalizing the interest on the new building, compared with the effect of expensing the Interest, is material Compute the weighted average accumulated expenditures on Sunland's new building during the capitalization period Weighted Average Accumulated Expenditures