On January 1, 2013, Kendall Inc. began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2014. Expenditures on the project were as follows: Jan 1 2013 $200,000 September 1 2013 $300,000 Dec 31, 2013 $300,000 March 31, 2014 $300,000 September 30, 2014 $200,000 Kendall borrowed $750,000 on a construction loan at 12% interest on Jan 1 2013. This loan was outstanding throughout the construction period. The company had $4,500,000 in 9% bonds payable outstanding in 2013 and 2014. Calculate the following:
1) Average accumulated expenditures for 2013 were:
2) Interest capitalized for 2013 was:
3 Interest expense for 2013 was:
4) Average accumulated expenditures for 2014 were:
5) Interest capitalized for 2014 was:
6) Interest expense for 2014 was: