5. (10-140) Early in 2012, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2012 and was completed on December 31, 2012. Dobbs made the following payments to Kiner, Inc. during 2012: Date June 1, 2012 August 31, 2012 December 31, 2012 Payment $4,800,000 7,200,000 6,000,000 In order to help finance the construction, Dobbs issued the following during 2012: 1. $4,000,000 of 10-year, 9 % bonds payable, issued at par on May 31, 2012, with interest payable annually on May 31. 2. 1,000,000 shares of no-par common stock, issued at $10 per share on October 1, 2012 In addition to the 9% bonds payable, the only debt outstanding during 2012 was a $1,000,000, 12% note payable dated January 1, 2008 and due January 1, 2018, with interest payable annually on January 1 Instructions Compute the amounts of each of the following (show computations): 1. Weighted-average accumulated expenditures qualifying for capitalization of interest cost. 2. Avoidable interest incurred during 2012 3. Total amount of interest cost to be capitalized during 2012