Chapter 15 Problem 15-23
Date Expenditure Months Amount
January 1 1,000,000 12 12,000,000
July 1 2,000,000 6 12,000,000
November 1 3,000,000 2 6,000,000
6,000,000 30,000,000
Average expenditures (30,000,000 / 12) 2,500,000
Average expenditures 2,500,000
Applicable to specific loan (1,000,000)
Applicable t general loan 1,500,000
Actual expenditures 6,000,000
Capitalizable interest:
Specific (1,000,000 x 10%) 100,000
General (1,500,000 x 12%) 180,000
Total cost of building 6,280,000
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