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:

DatePaymentJune 1, 2020$2,200,000August 31, 20203,300,000December 31, 20202,750,000

In order to help finance the construction, Dobbs issued the following during 2020:

1.$1,870,000of 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 $467,500, 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.Weighted-average accumulated expenditures qualifying for capitalization of interest cost.

2.Avoidable interest incurred during 2020.

3.Total amount of interest cost to be capitalized during 2020.

1.Weighted-average accumulated expenditures$2.Avoidable interest$3.Amount of interest cost to be capitalized$