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Pina Company is constructing a building. Construction began on February 1 and was completed on December...

Pina Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,004,000 on March 1, $1,284,000 on June 1, and $3,039,450 on December 31. Compute Pina’s weighted-average accumulated expenditures for interest capitalization purposes.

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Expert Solution

Expenditure on Month Calculation Weighted average accumulated expenditure
March 1                       10 2004000*10/11                                  18,21,818
Jun 1                         7 1284000*7/11                                     8,17,091
Dec 31                        -   3039450*0/11                                                  -  
Weighted average accumulated expenditure                                  26,38,909

ekkarill92 answered 1 year ago
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