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Can someone show me how to solve this problem? Question 8 On July 31, 2017, Blue Company engaged Minsk Tooling Company to construct a special
Can someone show me how to solve this problem?
Question 8 On July 31, 2017, Blue Company engaged Minsk Tooling Company to construct a special purpose piece of factory machinery. Construction was begun immediately and was completed on November 1, 2017. To help finance construction, on July 31 Blue issued a $296,400, 3- year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $194,400 of the proceeds of the note was paid to Minsk on July 31. The remainder of the proceeds was temporarily invested in short-term marketable securities (trading securities) at 10% until November 1. On November 1, Blue made a final $102,000 payment to Minsk. Other than the note to Netherlands, Blue's only outstanding liability at December 31, 2017, is a $28, 100, 890, 6-year note payable, dated January 1, 2014, on which interest is payable each December 31. Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2017. Interest revenue Weighted-average accumulated expenditures Avoidable interest Interest capitalizedStep by Step Solution
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