January 2, 2010, Indian River Groves began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2011. Expenditures for the construction were as follows:
- January 2, 2010 $200,000
- September 1, 2010 600,000
- December 31, 2010 600,000
- March 31, 2011 600,000
- September 30, 2011 400,000
Indian River Groves borrowed $1,100,000 on a construction loan at 12% interest on January 2, 2010. This loan was outstanding during the construction period. The company also had $4,000,000 in 9% bonds outstanding in 2010 and 2011.
The interest capitalized for 2010.