During 2020, Bonita Industries incurred weighted-average accumulated expenditures of $1690000 during construction of assets that qualified for capitalization of interest. The only debt outstanding during 2020 was a $2070000, 10%, 5-year note payable dated January 1, 2020. What is the amount of interest that should be capitalized by Bonita during 2020?

$169000.

$0.

$38000.

$207000.

On July 1, 2020, Bonita Corporation purchased factory equipment for $285000. Salvage value was estimated to be $7700. The equipment will be depreciated over five years using the double-declining balance method. Counting the year of acquisition as one-half year, Bonita should record depreciation expense for 2021 on this equipment of

$68400.

$114000.

$91200.

$58540.