able anually Dus of $150.000 Termine the amount of interest to be capitalized in 2020 in relation to the building. U S b. Prepare the journal entry to record the capitalization of interest and the recognition of under expense, if any, at December 31, 2020. E10.9 (LO 2) (Capitalization of Interest) On July 31, 2020, Amsterdam Company enge m 1ooling Company to construct a special-purpose piece of factory machinery, Construction began wome diately and was completed on November 1, 2020. To help finance construction, on July 31 Amsterdam issued a $300,000, 3-year, 12% note payable at Netherlands National Bank, on which interest is payan each July 31. $200,000 of the proceeds of the note was paid to Minsk on July 31. The remainder of love proceeds was temporarily invested in short-term marketable securities (trading securities at 10% November 1. On November 1, Amsterdam made a final $100.000 payment to Minsk. Other than the role to Netherlands, Amsterdam's only outstanding liability at December 31, 2020, is a $30,000,8%, 6-year note payable, dated January 1, 2017, on which interest is payable each December 31. Instructions a. Calculate weighted average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2020. (Round all computations to the nearest dollar.) b. Prepare the journal entries needed on the books of Amsterdam Company at each of the following dates. 1. July 31, 2020 2. November 1, 2020. 3. December 31, 2020. 10.10 (LO2) (Capitalization of Interest) The following three situations involve the capitalization