Capitalization of interest In February 2015, Quorum Corp.began the construction of a 10 story building.The construction is expected to be completed by January 2016. Instructions
a)Calculate the weighted-average accumulated expenditures for the year ended December
31, 2015.
b)Calculate the weighted-average capitalization rate on Quorum's general-purpose debt for
the year ended December 31, 2015.
c)Calculate the avoidable borrowing costs.
d)Calculate the amount of Quorum's borrowing costs that should be capitalized.

Question

Capitalization of interest In February 2015, Quorum Corp.began the construction of a 10 story building.The construction is expected to be completed by January 2016.  Instructions 
a)Calculate the weighted-average accumulated expenditures for the year ended December
31, 2015.
b)Calculate the weighted-average capitalization rate on Quorum's general-purpose debt for
the year ended December 31, 2015.
c)Calculate the avoidable borrowing costs.
d)Calculate the amount of Quorum's borrowing costs that should be capitalized.

Quizplus · Accepted Answer

The Answer of Capitalization of interest In February 2015, Quorum Corp.began the construction of a 10 story building.The construction is expected to be completed by January 2016.  Instructions 
a)Calculate the weighted-average accumulated expenditures for the year ended December
31, 2015.
b)Calculate the weighted-average capitalization rate on Quorum's general-purpose debt for
the year ended December 31, 2015.
c)Calculate the avoidable borrowing costs.
d)Calculate the amount of Quorum's borrowing costs that should be capitalized.

Capitalization of Interest in February 2015, Quorum Corp