Answer:
Marigold Corp.
The weighted-average accumulated expenditures for 2020 is:
= $3,000,000.
Explanation:
a) Data and Calculations:
Amount borrowed for construction = $3,330,000
Construction loan interest = 10%
Date of loan = January 2, 2020
Other loans:
7% bonds = $12,100,000
Date Expenditure Weight Weighted-Average
Expenditure
January 2, 2020 $ 592,000 21/21 $592,000
September 1, 2020 1,806,000 13/21 1,118,000
December 31, 2020 1,806,000 9/21 774,000
March 31, 2021 1,806,000 6/21 516,000
September 30, 2021 1,219,000 0/21 0
Weighted-average accumulated expenditure $3,000,000
Capitalized interest = $3,000,000 * 10% = $300,000
