On June 1, 2023, a company began construction of a new manufacturing plant. The plant was completed on October 31, 2024. Expenditures on the project were as follows ($ in millions): July 1, 2023 October 1, 2023 February 1, 2024 April 1, 2024 September 1, 2024 October 1, 2024 On July 1, 2023, the company obtained a $109 million construction loan with a 9% interest rate. The loan was outstanding through the end of October, 2024. The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 11%. This note was outstanding during all of 2023 and 2024. The company's fiscal year-end is December 31. In computing the capitalized interest for 2024, the average accumulated expenditures are: Multiple Choice O $215.38 million. $137.40 million. $213.43 million. 80 48 56 34 33 19 $194.67 million.
On June 1, 2023, a company began construction of a new manufacturing plant. The plant was completed on October 31, 2024. Expenditures on the project were as follows ($ in millions): July 1, 2023 October 1, 2023 February 1, 2024 April 1, 2024 September 1, 2024 October 1, 2024 On July 1, 2023, the company obtained a $109 million construction loan with a 9% interest rate. The loan was outstanding through the end of October, 2024. The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 11%. This note was outstanding during all of 2023 and 2024. The company's fiscal year-end is December 31. In computing the capitalized interest for 2024, the average accumulated expenditures are: Multiple Choice O $215.38 million. $137.40 million. $213.43 million. 80 48 56 34 33 19 $194.67 million.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:On June 1, 2023, a company began construction of a new manufacturing plant. The plant was completed on
October 31, 2024. Expenditures on the project were as follows ($ in millions):
July 1, 2023
October 1, 2023
February 1, 2024
April 1, 2024
September 1, 2024
October 1, 2024
Multiple Choice
On July 1, 2023, the company obtained a $109 million construction loan with a 9% interest rate. The loan was
outstanding through the end of October, 2024. The company's only other interest-bearing debt was a long-term
note for $100 million with an interest rate of 11%. This note was outstanding during all of 2023 and 2024. The
company's fiscal year-end is December 31.
In computing the capitalized interest for 2024, the average accumulated expenditures are:
$215.38 million.
$137.40 million.
$213.43 million.
80
48
56
$194.67 million.
34
33
19
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