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Early in 2020, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1,

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Early in 2020, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2020 and was completed on December 31, 2020, Dobbs made the following payments to Kiner, Inc. during 2020: Date June 1, 2020 August 31, 2020 December 31, 2020 Payment $2,000,000 3,000,000 2,500,000 In order to help finance the construction, Dobbs issued the following during 2020: 1. $1,700,000 of 10-year,9% bonds payable, issued at par on May 31, 2020, with interest payable annually on May 31 2. 300,000 shares of no-par common stock, issued at $10 per share on October 1, 2020. In addition to the 9% bonds payable, the only debt outstanding during 2020 was a $425,000, 12% note payable dated January 1. 2016 and due January 1, 2023, with interest payable annually on January 1. Compute the amounts of each of the following: Weighted average accumulated expenditures qualifying for capitalization of interest cost. Avoidable interest incurred during 2020. Total amount of Interest cost to be capitalized during 2020. 1 2 3 1 Weighted average accumulated expenditures S June 1, 2020 August 31, 2020 December 31, 2020 $2,000,000 3,000,000 2,500,000 In order to help finance the construction, Dobbs issued the following during 2020: 1. $1,700,000 of 10-year, 9% bonds payable, issued at par on May 31, 2020, with interest payable annually on May 31. 2. 300,000 shares of no-par common stock, issued at $10 per share on October 1, 2020. In addition to the 9% bonds payable, the only debt outstanding during 2020 was a $425,000, 12% note payable dated January 1, 2016 and due January 1, 2023, with interest payable annually on January 1. Compute the amounts of each of the following: 1. 2. Weighted average accumulated expenditures qualifying for capitalization of interest cost. Avoldable interest incurred during 2020. Total amount of interest cost to be capitalized during 2020. 3. 1 $ Weighted average accumulated expenditures 2 Avoidable interest $ 3. Amount of interest cost to be capitalized

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