Question 2 117 marks Mira Co. is constructing a Production Complex that qualifies for interest capitalization. The following information is available: Capitalization period: January 1, 2023 to June 30, 2024 (completion date is June 30, 2024). Expenditures on the project: 2023: January 1 $540,000 2024: March 1 $1,500,000 2023: May 1 $465,000 2024: May 1 $900,000 2023: October 1 $600,000 At the beginning of construction work, Mira Co. had the following debts outstanding: (1) Loan A: $1,000,000, with 12% interest rate, due to mature on December 31, 2026 (2) Loan B: $3,000,000, with 14% interest rate, with a maturity date of December 31, 2025 (3) Loan C: $6,000,000, with 8% interest rate, with a maturity date of December 31, 2023. Mira Co. uses the weighted average interest rate of its outstanding debts to capitalize interest for the Production Complex. Required: (a) Determine the amount of interest to be capitalized by Mira Co. for 2023. Show the necessary calculation. [7 marks] (b) Prepare the appropriate journal entries to record the interest capitalization for the Production Complex during 2023. [2 marks] (e) Determine the amount of interest to be capitalized by Mira Co. for 2024. Show the necessary calculation. (8 marks Page 4 of 10