Use the Following to Answer Questions

question 14

Multiple Choice

Use the following to answer questions
On June 1,2015,the Crocus Company began construction of a new manufacturing plant.The plant was completed on October 31,2016.Expenditures on the project were as follows ($ in millions) :
On July 1,2015,Crocus obtained a $70 million construction loan with a 6% interest rate.The loan was outstanding through the end of October,2016.The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 8%.This note was outstanding during all of 2015 and 2016.The company's fiscal year-end is December 31.
-In computing the capitalized interest for 2016,Crocus' average accumulated expenditures are:

• A)$ 46.30 million.
• B)$103.54 million.
• C)$122.30 million.
• D)$124.25 million.

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