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Early in 20X9. Cato Corporation engaged Architec, Inc. to design and construct a manufacturing facility. Construction was begun on June 30, 20X9 and as completed
Early in 20X9. Cato Corporation engaged Architec, Inc. to design and construct a manufacturing facility. Construction was begun on June 30, 20X9 and as completed on December 31, 20X9. Cato made payments on July 1, August 31 and December 31. Total payments for the year were $9,000,000. The weighted average accumulated expenditures for the year were $4,000,000. In order to help finance the construction, Cato issued a $5,000,000, 5-year, 8% note payable, at par, on June 30, 20X9, with interest payable annually on June 30. Compute each of the following for 20X9. 1. Avoidable interest for 20X9. 2. Actual interest for 20X9. 3. Total amount of interest cost to be capitalized
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