Use the following to answer questions: On February 1,2015, Spiral Co. began cons
ID: 2491495 • Letter: U
Question
Use the following to answer questions:
On February 1,2015, Spiral Co. began construction of a new warehouse. The building was finished and ready for use on November 30,2016. Expenditures on the project were as follows:
February 1,2015 $600,000
August 1,2015 $900,000
November 30,2015 $600,000
April 30,2016 $620,000
October 31,2016 $540,000
Spiral borrowed $700,000 on January 1,2015 and also had $4,000,000 in 11% bonds outstanding throughout both years.
1. Spiral's weighted average accumulated expenditures for 2015 was:
A)$600,000
B)$925,000
C)$1,025,000
D)$2,100,000
E)None of the above.The answer is___________
2. Spiral's capitalized interest in 2015 was:
A)$37,500
B)$57,812
C)$68,812
D)$197,750
E)None of the above. The answer is______________
3. The average accumulated expenditure for 2016 by the end of the capitalization period was:
A)$2,153,177
B)$2,224,792
C)$2,331,667
D)$3,790,825
E)None of the above. The answer is_____________
4. What was the final historical cost of Spiral's warehouse?
A)$3,430,199
B)$3,593,075
C)$3,672,575
D)$3,790,825
E)None of the above. The answer is___________
Explanation / Answer
1)
A 600,000
2)
D $ 197,750
3)
C) $2,331,667
4
D)$3,790,825
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