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On July 31, 2020, Larkspur Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery Construction begun immediately and was completed on
On July 31, 2020, Larkspur Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery Construction begun immediately and was completed on November 1, 2020. To help finance construction, on July 31 Larkspur issued a $300,000. 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $210,000 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. Larkspur made a final $90,000 payment to Minsk. Other than the note to Netherlands, Larkspur's only outstanding liability at December 31, 2020, is a $31,100,8%, 6-year note payable, dated January 1, 2017, on which interest is payable each December 31. (a) Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2020, $ Interest revenue Weighted average accumulated expenditures Avoidable interest Interest capitalized $ $
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