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Early in 2020. Dulce Corporation engaged Mikell, Inc. to design and construct a complete modernization of Dulce's manufacturing facility. Construction was begun on June 1,
Early in 2020. Dulce Corporation engaged Mikell, Inc. to design and construct a complete modernization of Dulce's manufacturing facility. Construction was begun on June 1, 2020 and was completed on December 31, 2020. Dulce made the following payments to Mikell, Inc. during 2020: June 1 October 1 December 1 $4,000,000 3,400,000 1,400,000 In order to help finance the construction, Dulce issued $2,000,000 of 10-year, 6% bonds payable, issued at par on May 31, 2018, with interest payable annually on May 31. In addition, Dulce had a $2,500,000, 7% note payable dated January 1, 2005 and due January 1, 2021, with interest payable annually on January 1 and a $750,000, 5% note payable dated July 1, 2009 and due June 30, 2021, with interest payable annually on June 30. Required: Calculate the weighted-average accumulated expenditures. Calculate avoidable interest. Calculate total amount of interest to be capitalized during 2019
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