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on Date 1 . Early in 2014, Dobbs Corpora-hion engaged KinarIng. to adesign and construct a complete modernization of Dobb's manufacturing facility. Construction was begun
on Date 1 . Early in 2014, Dobbs Corpora-hion engaged KinarIng. to adesign and construct a complete modernization of Dobb's manufacturing facility. Construction was begun Januryl, 2014 and was completed on December 31, 20114 Dobbs made the following payments to Kiner, Int during 2014- Payment January ! 2014 $4,000,000 August 31, 2014 9,000,000 December 31, 2014 7,500,000 Decembrary had the following debt oudstanding at 1,10% 5 year note to finance construc hien doted January, 2014 with interest payable, annually January $5,400,000 2) 6% ten year bonds issued at December 31, 2008, with interest payable annually on the December 31 #6,000,000 with interest payable ammually 3) 9% 3yecer note payable, dated January 1, 2013, January 'A 3,000,000 Compute the consecints of each of the following 1) Interest to be capitalized 2) Actual interest expense for the companys 1 for 2014 an paron . L
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