Asset Construction (30 points) Late in 2019. Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction began on January 1, 2020 and was completed on December 31, 2020. Dobbs made the following payments to Kiner, Inc. during 2020: Date Payment June 1, 2020 $2,000,000 August 31, 2020 3,000,000 December 31, 2020 2,500,000 In order to help finance the construction, Dobbs issued the following during 2020: 1. $1,700,000 of 10 year, 9% bonds payable, issued at par on December 31, 2019, with interest payable annually on December 31 In addition to the 9% bonds payable, the only debt outstanding during 2020 was a $425,000, 12% note payable dated January 1, 2016 and due January 1, 2023, with interest payable annually on December 31 Instructions IMPORTANT: You are expected to show the details of your work on the exam below. Answers with no supporting computations will not receive credit 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 2020, 3. Actual interest incurred and paid during 2020. 4. Total amount of interest cost to be capitalized during 2020 5. Prepare the journal entries to record The expenditures for the construction of the building (you can make one journal entry for all expenditures) The capitalization of the interest and the recognition of interest expense, if any, at December 31, 2020