PHASE 3 Island Solutions started construction of a new office building for its own use at an estimated cost of \$5 000000 on January 1, 2022, and completed the construction on December 31, 2022. j. During the year of construction (2022) the company had outstanding the following debt obligations. i. Specific Construction Debt: $200000012% note issued December 31,2021 . Interest payable semiannually ii. Other Debt: $140000010% short-term loan. Interest payable monthly and principal payable at maturity on May 30, 2023 $100000011% long-term loan. Interest payable on January 1 of each year and principal payable at maturity on January 1,2025 B. Total expenditures $5200000 C. Weighted average accumulated expenditures $3500000 One of the accounting interns on the other team having reviewed the statement of financial position commented that it just did not make any sense... this 'avoidable interest'.... In reality, isn't all interest unavoidable No one lends money without expecting to be compensated for it. TASK 6: The accountant has asked your team to explain to the intern of the other team the treatment for interest capitalization when accounting for self-constructed assets. In preparing your presentation notes be sure to address the following. Paragraph citations are to be provided with answers where applicable. 6. Compute the amount of interest to be capitalized. Provide detailed workings. Round to 2 decimal places. 26m 7. What was the capitalized cost of the new office building on the statement of financial position. 3m