Early in 2012, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2012 and was completed on December 31, 2012. Dobbs made the following payments to Kiner, Inc. during 2012:

Date Payment

June 1, 2012 $4,800,000

August 31, 2012 7,200,000

December 31, 2012 6,000,000

In order to help finance the construction, Dobbs issued $4,000,000 of 10-year, 9% bonds payable, issued at par on May 31, 2012, with interest payable annually on May 31.

In addition to the 9% bonds payable, the only debt outstanding during 2012 was a $1,200,000, 12% note payable dated January 1, 2008 and due January 1, 2018, with interest payable annually on January 1.

Instructions (3 points)

Compute the amounts of each of the following (show computations):

1. Weighted-average accumulated expenditures qualifying for capitalization of Interest cost _________________

2. Avoidable interest incurred during 2012. _______________

3. Total amount of interest cost to be capitalized during 2012. _______________

Really need help with 2 and 3, please