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Early in 2020, DobbsCorporatiin engaged Kiner, inc to design and construct a complete modernizatiin of Dobb's manufacturing facility. Constructiin was begun on june 1,2020 and
Early in 2020, DobbsCorporatiin engaged Kiner, inc to design and construct a complete modernizatiin of Dobb's manufacturing facility. Constructiin was begun on june 1,2020 and was completed on december 31,2029. Dobbs made the following payments to kiner, inc during 2020. june 1 2020. payment $1,600,000, august 31,2020, $2,400,000. december 31,2020, 2,000,000 . in order to help finance the constructiin, dobbs issued the following during 2020. 1). 1,360,000 of 10 years,9% bonds payable, issued 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 $340,000,12% note payabledated january 1,2016 ans due january 1,2023, with interest payable annaully on january 1. compute the amounts of each of the following : 1) weighted-average accumulated expenditure. 2). Avoidable interest. 3) amount of interest cost to be capitalized.
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