Question: Practice problem chapter 10- Self-constructed assets On January 1, 2021, JJ Inc. began construction of an automated cattle feeder system. The system was finished and

Practice problem chapter 10- Self-constructed assets

On January 1, 2021, JJ Inc. began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2022. Expenditures on the project were as follows:

January 1, 2021 = 200,000

September 1, 2021 = 300,000

December 31, 2021 = 300,000

March 31, 2022 = 300,000

September 30, 2022= 200,000

JJ borrowed $750,000 on a construction loan at 12% interest outstanding throughout the construction period. The company had $4,500,000 in 9% bonds payable outstanding in 2021 and 2022.

Calculate:

Average accumulated expenditures for 2022
Interest capitalized for 2022
Actual interest for 2022

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