Question 1 Gibbs Manufacturing Co. was incorporated on 1/2/19 but was unable to begin manufacturing activities until 8/1/19 because new factory facilities were not completed until that date. The Land and Building account at 12/31/19 per the books was as follows: Additional information: 1. To acquire the land and building on 1/31/19, the company paid 100,000 cash and 1,000 ordinary shares of its (par value = 100/ share) which is very actively traded and had a market price per share of 170. 2. When the old building was removed, Gibbs paid Kwik Demolition Co. 4,000, but also received 1,500 from the sale of salvaged material. 3. Legal fees covered the following: Cost of organization 62,500 Examination of title covering purchase of land 2,000 Legal work in connection with the building construction 66.0001.500 4. The fire insurance premium covered premiums for a three-year term beginning May 1, 2019. 5. General expenses covered the following for the period 1/2/19 to 8/1/19. President's salary 20,000 Plant superintendent covering supervision of new building 30.00010.000 During 2019, Barden Building Company constructed various assets at a total cost of 8,400,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2019 were 5,600,000. The company had the following debt outstanding at December 31, 2019: 1. 10%,5-year note to finance construction of various assets, dated January 1, 2019, with interest payable annually on January 13,600,000 2. 12%, ten-year bonds issued at par on December 31, 2013, with interest payable annually on December 314,000,000 3. 9%,3-year note payable, dated January 1, 2018, with interest payable annually on January 12,000,000 Instructions Compute the amounts of each of the following (show computations). 1. Avoidable interest. 2. Total interest to be capitalized during 2019