Use the following information for questions 2 through 4. On March 1, 2010, Newto
ID: 2366379 • Letter: U
Question
Use the following information for questions 2 through 4. On March 1, 2010, Newton Company purchased land for an office site by paying $540,000 cash. Newton began construction on the office building on March 1. The following expenditures were incurred for construction: Date Expenditures March 1, 2010 $ 360,000 April 1, 2010 504,000 May 1, 2010 900,000 June 1, 2010 1,440,000 The office was completed and ready for occupancy on July 1. To help pay for construction, $720,000 was borrowed on March 1, 2010 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2010 was a $300,000, 12%, 6-year note payable dated January 1, 2010. 2. The weighted-average accumulated expenditures on the construction project during 2010 were a. $384,000. b. $2,934,000. c. $312,000. d. $696,000.Explanation / Answer
The actual interest cost incurred during 2010 was A) $90,000.answer