Hawkins Corporation began construction of a motel on March 31, 2021. The project was completed on April 30, 2022. No new loans were required to fund construction. Hawkins does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $5,100,000, 6% note $14,540,000, 10% bonds Construction expenditures incurred were as follows: March 31, 2021 $ 3,910,000 June 30, 2021 5,910,000 November 30, 2021 1,782,000 February 28, 2022 2,910,000 The companys fiscal year-end is December 31. Required: Calculate the amount of interest capitalized for 2021 and 2022.

2. Clark Oil and Gas incurred costs of $17.2 million for the rights to extract resources from a natural gas deposit. The company expects to extract 8.6 million cubic feet of natural gas during a six-year period. Natural gas extracted during years 1 and 2 were 860,000 and 1,660,000 cubic feet, respectively. What was total depletion for year 1 and year 2, assuming the company uses the units-of-production method?

3.

Archie Co. purchased a framing machine for $60,000 on January 1, 2021. The machine is expected to have a four-year life, with a residual value of $5,000 at the end of four years. Using the sum-of-the-years'-digits method, depreciation for 2021 and book value at December 31, 2021, would be:

Cutter Enterprises purchased equipment for $75,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $8,400. Using the straight-line method, the book value at December 31, 2021, would be: