Problem #$1(25$ points$)$

Groover Industries began construction of a factory building on January $1,2017.$ Construction continued throughout $2017$ and the building was finished on December $31,2017.$ The following amounts were spent on the building on:

January $1,2017$ May $1,2017$ August $31,2017$ October $1,2017$ Total

$

$1,600,000850,000700,000850,000$

$$4,000,000$

On January $1,2017,$ Groover borrowed $$1,500,000$ from First State bank specifically for this construction through a loan bearing interest at $8\%$ annually and maturing in $5$ years. Groover had two other long$-$term notes payable outstanding for the entire year: a $$1,000,000$ note with an interest rate of $10\%$ and a $$3,000,000$ note with an interest rate of $9\%.$

Required $($Show all calculations$)$

Compute the weighted average accumulated expenditures for the factory building for $2017.$

Compute actual interest for $2017.$

Compute avoidable interest for $2017.$

How much interest should be capitalized in $2017?$