On January 1, 2016, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2017. Expenditures on the project were as follows:
|
January 1, 2016
|
$330,000
|
|
September 1, 2016
|
$495,000
|
|
December 31, 2016
|
$495,000
|
|
March 31, 2017
|
$495,000
|
|
September 30, 2017
|
$330,000
|
Dreamworld had $6,500,000 in 12% bonds outstanding through both years.
Dreamworld's capitalized interest in 2016 was:
$39,600.
$79,200.
$59,400.
$69,300.