On January 1, 2018, the Shagri Company began construction on a new manufacturing facility for its...

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On January 1, 2018, the Shagri Company began construction on a new manufacturing facility for its own use. The building was c

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Answer 1

Answer #1

Date	Expenditure	*	Weight	=	Average
January 1	510000	*	12/12	=	510000
March 1	606000	*	10/12	=	505000
July 31	486000	*	5/12	=	202500
September 30	610000	*	3/12	=	152500
December 31	310000	*	0/12	=	0
Accumlated expenditure					1370000

	Average		Interest rate		Capitalized interest
Average accumlated expenditures	1370000	*	9%	=	123300

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Answer 2

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