Early in 2017, Qatar Corporation engaged Emirate Ltd. to design and construct a complete modernization of Qatar's manufacturing facility. Construction began on June 1, 2017 and was completed on December 31, 2017. Qatar made the following payments to Emirate Ltd. during 2017:

DatePayment

June 1, 2017$3,300,000

August 31, 20174,800,000

December 31, 20174,000,000

In order to help finance the construction, Qatar issued the following during 2017:

1.$2,000,000, ten-year, 9% bonds payable, issued at par on May 31, 2017, with interest payable annually on May 31,

2.1,000,000 no-par common shares, issued at $10 per share on October 1, 2017.

In addition to the 9% bonds payable, the only other debt outstanding during 2017 was a $700,000, 12% note payable dated January 1, 2016 and due January 1, 2019, with interest payable annually on January 1.

Instructions

Calculate the amounts of each of the following (show calculations):

a)weighted-average accumulated expenditures qualifying for capitalization of interest cost,

b)avoidable interest incurred during 2017,

c)total amount of interest cost to be capitalized during 2017.