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Imhoff Co. began construction of a small building



1.	Gutierrez Company is constructing a building. Construction began in 2010 and the building was completed 12/31/10. Gutierrez made payments to the construction company of $1,500,000 on 7/1, $3,300,000 on 9/1, and $3,000,000 on 12/31. Average accumulated expenditures were
a.	$1,575,000.
b.	$1,850,000.
c.	$4,800,000.
d.	$7,800,000.

2.	On May 1, 2010, Goodman Company began construction of a building. Expenditures of $120,000 were incurred monthly for 5 months beginning on May 1. The building was completed and ready for occupancy on September 1, 2010. For the purpose of determining the amount of interest cost to be capitalized, the average accumulated expenditures on the building during 2010 were
a.	$100,000.
b.	$120,000.
c.	$480,000.
d.	$600,000.

	75.	During 2010, Kimmel Co. incurred average accumulated expenditures of $400,000 during construction of assets that qualified for capitalization of interest. The only debt outstanding during 2010 was a $500,000, 10%, 5-year note payable dated January 1, 2008. What is the amount of interest that should be capitalized by Kimmel during 2010?
a.	$0.
b.	$10,000.
c.	$40,000.
d.	$50,000.

	3.	On March 1, Felt Co. began construction of a small building. Payments of $120,000 were made monthly for three months beginning March 1. The building was completed and ready for occupancy on June 1. In determining the amount of interest cost to be capitalized, the weighted-average accumulated expenditures are
a.	$30,000.
b.	$60,000.
c.	$120,000.
d.	$240,000.

	4.	On March 1, Imhoff Co. began construction of a small building. Payments of $180,000 were made monthly for four months beginning March 1. The building was completed and ready for occupancy on June 1. In determining the amount of interest cost to be capitalized, the weighted-average accumulated expenditures are
a.	$90,000.
b.	$180,000.
c.	$360,000.
d.	$720,000.




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