Martinez Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $15,000,000 on January 1, 2020. Martinez expected to complete the building by December 31, 2020. Martinez has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 $6,000,000 4,200,000 3,000,000 Assume that Martinez completed the office and warehouse building on December 31, 2020, as planned at a total cost of $15,600,000, and the weighted average amount of accumulated expenditures was $10,800,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to 0 decimal places, e.g. 5,275.) Avoidable Interest $ eTextbook and Media On December 31, 2020, Bridgeport Inc. has a machine with a book value of $958,800. The original cost and related accumulated depreciation date are as follows. Machine Less: Accumulated depreciation Book value $1,326,000 367,200 $958,800 Depreciation is computed at $61,200 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transa Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. A fire completely destroys the machine on August 31, 2021. An insurance settlement of $438,600 was received for this casualty. Assume th settlement was received immediately. (Credit account titles are automatically indented when amount is entered. Do not indent many no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit August 31, 2021 (To record current depreciation.) August 31, 2021 (To record loss of the machine.) On April 1, 2021, Bridgeport sold the machine for $1,060,800 to Yoakam Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit April 1, 2021 (To record current depreciation.) April 1, 2021 (To record sale of the machine.) On July 31, 2021, the company donated this machine to the Mountain King City Council. The fair value of the machine at the time of the donati was estimated to be $1,122,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If n entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit July 31, 2021 (To record current depreciation.) July 31, 2021 (To record donation of the machine.)
