Reference no: EM132562852

xyz Company started construction on a building at the beginning of the current year and completed the construction at year-end. The entity had only two interest notes outstanding during the year both of these notes were outstanding for 12 months of the year.

The following information is available:

Average accumulated expenditures                                                       2,500,000

Ending balance in construction in progress before capitalization of interest   3,600,000

6% note incurred specifically for the project                                           1,500,000

9% long term note                                                                             5,000,000

Question 1: What is the cost of the Building?