Use the Following Information for Questions 78 Through 80

question 145

Multiple Choice

Use the following information for questions 78 through 80.
On March 1, 2014, Newton Company purchased land for an office site by paying $1,800,000 cash. Newton began construction on the office building on March 1. The following expenditures were incurred for construction: The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $2,400,000 was borrowed on March 1, 2014 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2014 was a $1,000,000, 12%, 6-year note payable dated January 1, 2014.
-The actual interest cost incurred during 2014 was

• A) $300,000.
• B) $336,000.
• C) $168,000.
• D) $280,000.

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Definitions:

Confidential Information

Any data or information that is not meant to be shared with the public or unauthorized persons.

Costly Harm

Damage or injury that incurs a significant financial burden on the affected party.

File Number

An identifier assigned to a case, document, or record for tracking and organizational purposes.

Plaintiff

A party who initiates a lawsuit.