Capitalization of Interest in February 2015, Quorum Corp

question 433

Essay

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.

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Definitions:

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