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During 2025, Patricia Building Company constructed various assets at a total cost of $12,600,000. The weighted average accumulated expenditures on assets qualifying for capitalization of

image text in transcribed During 2025, Patricia Building Company constructed various assets at a total cost of $12,600,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2025 were $8,762,000. The company had the following debt outstanding at December 31, 2025: 1. 10%,5-year note to finance construction of various assets, dated January 1,2025 , with interest payable $5,408,000 annually on January 1 5,874,000 2. 12%, ten-year bonds issued at par on December 31,2016 , with interest payable annually on December 31 2,937,000 3. 9\%, 3-year note payable, dated January 1, 2025, with interest payable annually on January 1 Compute the amounts of each of the following. 1. Avoidable interest $ 2. Total interest to be capitalized during 2025 $ During 2025, Patricia Building Company constructed various assets at a total cost of $12,600,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2025 were $8,762,000. The company had the following debt outstanding at December 31, 2025: 1. 10%,5-year note to finance construction of various assets, dated January 1,2025 , with interest payable $5,408,000 annually on January 1 5,874,000 2. 12%, ten-year bonds issued at par on December 31,2016 , with interest payable annually on December 31 2,937,000 3. 9\%, 3-year note payable, dated January 1, 2025, with interest payable annually on January 1 Compute the amounts of each of the following. 1. Avoidable interest $ 2. Total interest to be capitalized during 2025 $

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