During the first quarter of the operating year, Computer Corp began construction of its new building at a cost of $60,000,000. The building will initially be financed with 30% internal equity (9% cost of equity) with the remainder from a $30,000,000 construction loan (three annual $10,000,000 payments plus interest at 6%) and its general debt facilities (8% weighted average interest rate.) Assuming that Computer incurred average accumulated expenses of $54,000,000 pertaining to the building construction during the year and had actual borrowing costs of $2,440,000, what amount of capitalized interest cost would be recognized by the company at year-end

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east west sales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 ) the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss)