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Early in 2019. Glad Corporation engaged Firestone, Inc. to design and construct a modernized manufacturing facility. Construction began on June 1, 2019 and was completed
Early in 2019. Glad Corporation engaged Firestone, Inc. to design and construct a modernized manufacturing facility. Construction began on June 1, 2019 and was completed on December 31, 2019. Glad made the following payments to Firestone, Inc. during 2019. Date Payment June 1, 2019 $1,600,000 August 31, 2019 3,400,000 December 31, 2019 2,500,000 In order to help finance the construction, Glad Corporation had the following debt outstanding: $2,200,000, 10 year, 9% note payable issued on January 1, 2019 with the express purpose of funding the new manufacturing facility, $750,000, 12 year, 12% note payable issued on June 1, 2015. $3,200,000, 5 year, 8% note payable issued on January 1, 2018. 1,000,000 shares of no par common stock, issued at $10 per share on January 1, 2019. Instructions: 1. Compute the weighted average accumulated expenditure. 2. Compute the amount of interest to be capitalized. The answer should include a calculation of actual and avoidable interest. Round all interest rates to the nearest hundredth
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