Early in 2020, Qatar Corporation engaged Emirate Ltd. to design and construct a complete modernization of Qatars manufacturing facility. Construction began on June 1, 2020, and was completed on December 31, 2020. Qatar made the following payments to Emirate Ltd. during 2020:

Date Payment

June 1, 2020$ 3,300,000

August 31, 20204,800,000

December 31, 20204,000,000

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

1.$ 2,000,000, ten-year, 9% bonds payable, issued at par on May 31, 2020, with interest payable annually on May 31,

2.1,000,000 common shares, issued at $ 10 per share on October 1, 2020.

In addition to the 9% bonds payable, the only other debt outstanding during 2020 was a $ 700,000, 12% note payable dated January 1, 2019, and due January 1, 2022, with interest payable annually on January 1.

Instructions

Calculate the amounts of each of the following (show calculations):

a)weighted-average accumulated expenditures qualifying for capitalization of interest cost,

b)avoidable interest incurred during 2020,

c)total amount of interest cost to be capitalized during 2020.