Anstead Blackout Power Company constructed a new power plant to supply energy to the Capers Electrical Grid. The construction began on January 2 and ended on December 31 of the current year. On the date of completion, the plant had a total cost of $8,580,000. The weighted average accumulated expenditures for the year were $4,260,000. The company had the following debt outstanding for the entire year: B Click the icon to view outstanding debt.) Below is the interest capitalized and interest expensed assuming that Anstead Blackout Power reports under U.S. GAAP. (Click the icon to view the interest capitalized and interest expense assuming that Anstead Blackout Power report under U.S. GAAP.) Read the requirement. C. Compute the amount of interest to be capitalized for the current year if Anstead Blackout Power Company was an IFRS reporter. Interest to be capitalized = Compute the amount of interest to be expensed in the current year Anstead Blackout Power Company was an IFRS reporter. Interest to be expensed = Prepare the journal entry to record the cash interest payments for the current year. Assume that all interest is paid at the end of the year and any interest capitalized is debited to the construction in progress account. (Record debits first, then credits. Exclude explanations from any journal entries.) Account December 31 X GAAP. eport under U.S. GAAP.) Reference Debt Type Principal Interest Rate 2,030,000 6 % Actual Interest 121,800 $ $ 6% Note Payable (Specific) Outstanding Debts 12 % 12% Note Payable (General) 16% Note Payable (General) 3,000,000 5.000.000 360,000 800,000 16 % $ 8,000,000 $ S 1,160,000 Total General Debt Debt Instrument and Purpose Amount 6% note payable: Used to finance the power plant construction project $ 2,030,000 12% bond payable: Used to finance maintenance of local transmitters $ 3,000,000 16% note payable: Used to finance construction of corporate headquarters $5,000,000 S 1,281,800 Total Interest Avoidable Rate Weighted Average Debt Type Accumulated Expenditures Specific Debt $ 2,030,000 General Debt 2.230,000 Total $ 4,260,000 6% $ Interest 121,800 323,350 ( Print Done 14.5 % $ 445,150 Interest to be capitalized = $ 445,150 Interest to be expensed = $ 836,650