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Early in 2017, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1,
Early in 2017, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2017 and was completed on December 31, 2017. Dobbs made the following payments to Kiner, Inc. during 2017: Date une 1, 2017 August 31, 2017 December 31, 2017 Payment $5,964,000 9,072,000 7,368,000 In order to help finance the construction, Dobbs issued the following during 2017: $4,880,000 of 10-year, 9% bonds payable, issued at par on May 31, 2017, with interest payable annually on May , 31. 2300,000 shares of no-par common stock, issued at $10 per share on October 1, 2017. In addition to the 990 bonds payable, the only debt outstanding during 2017 was a $1,284,000, 12% note payable dated January 1, 2013 and due January 1, 2023, with interest payable annually on January 1. Compute the amounts of each of the following: 1. Weighted-average accumulated expenditures qualifying for capitalization of interest cost. 2. Avoidable interest incurred during 2017. 3. Total amount of interest cost to be capitalized during 2017. 1. Weighted-average accumulated expenditures 2. Avoidable interest 3. Amount of interest cost to be capitalized
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