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Problem - 1 Part In late 2019, Stiller Corporation engaged Meara, Inc. to design and construct a complete modernization of Stiller's manufacturing facility. Construction began
Problem - 1 Part In late 2019, Stiller Corporation engaged Meara, Inc. to design and construct a complete modernization of Stiller's manufacturing facility. Construction began on January 2, 2020, and completed on December 31, 2020. Stiller made the following payments to Meara, Inc. during 2020: Date Payment March 31, 2020 $2,000,000 August 1, 2020 3,500,000 December 1, 2020 2,000,000 To help finance the construction, on January 1, 2020, Stiller issued an 8-year, $1,800,000, 10% note payable. Stiller's only other debt outstanding during 2020 was a 10-year, $1,500,000, 11% note payable dated January 1, 2018 Required a. Compute weighted-average accumulated expenditures for the construction project. b. Compute avoidable interest for the year. C. Compute actual interest for the year. d. What amount of interest should be capitalized as part of the cost of the building? e. What amount of interest should be charged to expenses for the year
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