Problem 1

During 2017, Barden Building Company constructed various assets at a total cost of $12,600,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2017 were $8,918,000. The company had the following debt outstanding at December 31, 2017:

1.		10%, 5-year note to finance construction of various assets, dated January 1, 2017, with interest payable annually on January 1		$5,308,000
2.		12%, ten-year bonds issued at par on December 31, 2011, with interest payable annually on December 31		5,830,000
3.		9%, 3-year note payable, dated January 1, 2016, with interest payable annually on January 1		2,915,000

I caluculated weighted average interest by using 1, 2, and 3. But the anwer says 1 is specific loan. How can I tell 1 is spefic loan and different from 2 and 3.

Problem 2 : A machine cost $900,000 on April 1, 2017. Its estimated salvage value is $90,000 and its expected life is eight years.

Calculate the depreciation expense by straight-line for 2017.

Depreciation expense... 75,938

Calculate the depreciation expense by double-declining balance for 2018

Depreciation expense... 182, 813

Calculate the depreciation expense by sum-of-the-years'-digits for 2018

Depreciation expense...163,125

Which method would result in the smallest income amount for 2018?

I thought it was straight line,but the answer was double declining. Is this because double declicing, the expense is highest?

Thank you for your help!