Answer:
$ 2,402,000.00
Explanation:
We should multiply the expenditures by the time outstanding during the year.
construction capitalized interest
date expenditure weight * weighted expenditure
01-mar $1,992,000.00 0.833333333 1,660,000.00
01-jun $1,272,000.00 0.583333333 742,000.00
31-dic $3,029,260.00 0
2,402,000.00
from March 1st to December 31th we got 10 complete months over the 12 month of the year. So this ammount capitalize for 10/12 part of a year
from June 1st to December 31th we got 7 complete months over the 12 month of the year. It capitalize for 7/12 part of the year
The final expenditure; did not capitalize as it was done at the end of the year.
We then multiply weight by the expenditure and get the weigthed expenditure.
Finally we add them to get the total
