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Early in 2021, Dobbs Corporation engaged Kiner, Inc, to design and construct a new manufacturing facility. Construction was begun on June 1, 2021 and was

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Early in 2021, Dobbs Corporation engaged Kiner, Inc, to design and construct a new manufacturing facility. Construction was begun on June 1, 2021 and was completed on December 31, 2021. Dobbs made the following payments to Kiner, Inc, during 2021: In order to help finance the construction, Dobbs borrowed $3,000,000 by acquiring a 10-year, 9% note payable on May 31, 2021, with interest payable annually on May 31 . In addition to the note payable, the only debt outstanding during 2021 was a $950,000,12% note payable dated January 1, 2017 and due January 1, 2027, with interest payable annually on January I. Instructions Compute the amounts of each of the following: 1. Weighted-average accumulated expenditures qualifying for capitalization of interest cost. 3,200,000 $13,700,000 2,908,000 3,500,000 Avoidable interest incurred during 2021. $271,500$217,500$330,000$216,720 Question 23 Total amount of interest cost to be capitalized during 2021. 217,500330,000216,720271,500 The balances in Land, Building, and Interest Expense accounts at 12/31/21. Land: 1,000,000; Building: 13,030,000; Int Exp: 0 Land: 1,000,000; Building: 12.700,000; Int Exp: 271,500 Land: 1,000,000; Building: 12.917,500; int Exp: 54,000 Land: 1,000,000; Building: 12,971,500; Int Exp: 0 Early in 2021, Dobbs Corporation engaged Kiner, Inc, to design and construct a new manufacturing facility. Construction was begun on June 1, 2021 and was completed on December 31, 2021. Dobbs made the following payments to Kiner, Inc, during 2021: In order to help finance the construction, Dobbs borrowed $3,000,000 by acquiring a 10-year, 9% note payable on May 31, 2021, with interest payable annually on May 31 . In addition to the note payable, the only debt outstanding during 2021 was a $950,000,12% note payable dated January 1, 2017 and due January 1, 2027, with interest payable annually on January I. Instructions Compute the amounts of each of the following: 1. Weighted-average accumulated expenditures qualifying for capitalization of interest cost. 3,200,000 $13,700,000 2,908,000 3,500,000 Avoidable interest incurred during 2021. $271,500$217,500$330,000$216,720 Question 23 Total amount of interest cost to be capitalized during 2021. 217,500330,000216,720271,500 The balances in Land, Building, and Interest Expense accounts at 12/31/21. Land: 1,000,000; Building: 13,030,000; Int Exp: 0 Land: 1,000,000; Building: 12.700,000; Int Exp: 271,500 Land: 1,000,000; Building: 12.917,500; int Exp: 54,000 Land: 1,000,000; Building: 12,971,500; Int Exp: 0

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