Question
On July 31, 2017, Grouper Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction was begun immediately and was completed
On July 31, 2017, Grouper Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction was begun immediately and was completed on November 1, 2017. To help finance construction, on July 31 Grouper issued a $278,400, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $188,400 of the proceeds of the note was paid to Minsk on July 31. The remainder of the proceeds was temporarily invested in short-term marketable securities (trading securities) at 10% until November 1. On November 1, Grouper made a final $90,000 payment to Minsk. Other than the note to Netherlands, Groupers only outstanding liability at December 31, 2017, is a $32,000, 8%, 6-year note payable, dated January 1, 2014, on which interest is payable each December 31.
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Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2017.
Interest revenue $ [Entry field with correct answer] 2250 Weighted-average accumulated expenditures $ [Entry field with correct answer] 47100 Avoidable interest $ [Entry field with incorrect answer] 6280 Interest capitalized $ [Entry field with incorrect answer]
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