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Early in 2010, Dobbs Corporation engaged Kiner, Inc, to design and construct a complete modernization of Dobbs's manufacturing facility. construction was begun on June 1.2010
Early in 2010, Dobbs Corporation engaged Kiner, Inc, to design and construct a complete modernization of Dobbs's manufacturing facility. construction was begun on June 1.2010 and was completed on December 31, 2010. Dobbs made the following payments to Kiner, Inc. during 2010: In order to help finance the construction, Dobbs issued the following during 2010; $3,000,000 of 10-year, 9% bounds payable, issued at par on May 31, 2010. with interest payable annually on May 31. 1,000,000 shares of no-par ordinary shares, issued at $10 per share on October 1, 2010. In addition to the 9% bonds payable, the only debt outstanding during 2010 was a $750,000. 12% note payable dated January 1, 2006 and due January 1, 2016, with interest payable annually on January 1. Compute the amounts of each of the following (show computations): Weighted-average accumulated expenditures qualifying for capitalization of middot interest cost. Avoidable intern! incurred during 2010. Total amount of interest cost to be capitalized during 2010. Pullman Corporation had retained earnings of $700,000 at January 1, 2011. During the year the company experienced a net loss of $300,000 and declared cash dividends of $80.000. It was discovered in 2011 that $50,000 of repair expense was debited to the land account in 2010. The income tax rate is 50%. Determine the retained earnings balance at December 31, 2011. A) $280,000 B) $350,000 C) $270,000 D) $360,000
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