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During 2 0 2 4 , Shelton Inc. constructed a warehouse. The company had the following debt outstanding on December 3 1 , 2 0

During 2024, Shelton Inc. constructed a warehouse. The company had the following debt outstanding on December 31,2024:
$7.5 Million, 7.2%,1-year note for a construction loan, dated January 1,2024, with interest payable annually on December 31
$5.8 Million, 3.9%, ten-year bonds issued at par on December 31,2021, with interest payable annually on December 31
$6.4 million, 5.7%,3-year note payable, dated January 1,2023, with interest payable annually on December 31
There are three different scenarios to consider.
Scenario A: WAE for 2024 are $9,200,000. Specific interest method is used
Scenario B: WAE for 2024 are $6,500,000. Specific interest method is used
Scenario C: WAE for 2024 are $9,200,000. Weighted average method is used
For each scenario:
a.
Report the amount of interest that gets capitalized
b.
Report the journal entry for all interest costs during 2024.
c.
Report the effects on total assets, liabilities, equity, revenues, expenses, and net income. Give both direction and amount.

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