On January 2, 2020, Sheridan Company began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows: January 2, 2020 $ 594000 September 1, 2020 1806000 December 31, 2020 1806000 March 31, 2021 1806000 September 30, 2021 1193000 Sheridan Company borrowed $3320000 on a construction loan at 10% interest on January 2, 2020. This loan was outstanding during the construction period. The company also had $12960000 in 7% bonds outstanding in 2020 and 2021.
On January 2, 2020, Sheridan Company began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows: January 2, 2020 $ 594000 September 1, 2020 1806000 December 31, 2020 1806000 March 31, 2021 1806000 September 30, 2021 1193000 Sheridan Company borrowed $3320000 on a construction loan at 10% interest on January 2, 2020. This loan was outstanding during the construction period. The company also had $12960000 in 7% bonds outstanding in 2020 and 2021.
Chapter7: Deductions And Losses: Certain Business Expenses And Losses
Section: Chapter Questions
Problem 36P
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Question
On January 2, 2020, Sheridan Company began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows:
| January 2, 2020 | $ 594000 |
| September 1, 2020 | 1806000 |
| December 31, 2020 | 1806000 |
| March 31, 2021 | 1806000 |
| September 30, 2021 | 1193000 |
Sheridan Company borrowed $3320000 on a construction loan at 10% interest on January 2, 2020. This loan was outstanding during the construction period. The company also had $12960000 in 7% bonds outstanding in 2020 and 2021.
What were the weighted-average accumulated expenditures for 2021 by the end of the construction period?
|
a |
$4325600 |
|
b |
$5953200 |
|
c |
$4147200 |
|
d |
$903000 |
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