Q6. ABC Corporation borrowed SAR 150,000 at 10% interest from NCB Bank on Jan. 1, 2020, for specific purposes of constructing special-purpose equipment to be used in its operations. Construction on the equipment began on Jan. 1, 2020, and other general debt existing on Jan. 1, 2020 was: SAR 200,000, 12%, 10-year bonds payable SAR 100,000, 11%, 5-year note payable The weighted-average accumulated expenditures was SAR 250,000. Compute the Actual and Avoidable Interest and Pass journal entry for the appropriate interest to be capitalized.

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