On January $1,20$x$2,$ Nacho Mama$$s Cantina began construction on a new restaurant. Mama had

the following debt obligations outstanding all year:

Item Amount Interest rate

Long$-$term loan $$600,0007\%$

Long$-$term loan $1,500,0008\%$

Long$-$term loan $200,0004\%$

Costs associated with the construction are provided below:

Date Amount Portion of year outstanding Weighted average

$1$ January $1,165,000$

$1$ March $140,000$

$31$ July $1,200,000$

$1$ November $75,000$

Total $2,580,000$

The restaurant was ready to open on December $31.$

a$.$ Calculate the weighted average accumulated expenditures associated with the project.

$13$

b$.$ Calculate the weighted average interest rate of non$-$construction loans.

c$.$ Calculate the amount of interest to be capitalized.

d$.$ Calculate amount of interest expense for $20$x$2$

e$.$ Calculate recognition value of constructed asset.

f$.$ What would the recognition value of the asset be if you assume that all of the costs were

incurred evenly throughout the year?

g$.$ What would the interest expense be if you assume that all of the costs were incurred evenly throughout the year?