On January 1, 2016, Kendall Inc. began construction

Question # 00412447 Posted By: rey_writer Updated on: 10/24/2016 04:47 AM Due on: 10/24/2016
Subject Accounting Topic Accounting Tutorials:
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On January 1, 2016, Kendall Inc. began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2017. Expenditures on the project were as follows:

January 1, 2016$200,000
September 1, 2016$300,000
December 31, 2016$300,000
March 31, 2017$300,000
September 30, 2017$200,000


Kendall borrowed $750,000 on a construction loan at 12% interest on January 1, 2016. This loan was outstanding throughout the construction period. The company had $4,500,000 in 9% bonds payable outstanding in 2016 and 2017.


Interest capitalized for 2016 was:

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