Testbank Multiple Choice Question 90

Concord Corporation is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6450000 on March 1, $5340000 on June 1, and $8050000 on December 31. Concord Corporation borrowed $3220000 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%, 3-year, $6350000 note payable and an 11%, 4-year, $12650000 note payable.

What amount of interest should be charged to expense?

$7814191

$1077791

$2026500

$1464191