Question 2 (25 marks) On 1 June 2017 Super Ltd contracted with a construction company to have a new building constructed for $8,000,000 on a piece of land owned by Super Ltd. The constructions is expected to be completed by the end of 2019. Th during 2017 were: e payments made by Super Ltd to the contractor l June 1 July l September 31 December 210,000 640,000 300,000 500,000 Super Ltd had the following debt outstanding at 31 December 2017 $750,000, 15%, 3-year note payable issued on 1 June 2017 to finance the construction of the building with interest payable annually on 31 December $600,000, 10%, 5-year note payable issued on 1 December 2015 with interest payable on 31 December. * $550,000, 13%, 10-year bond issued on 1 December 2014 with interest payable annually in December * $1,000,000, 790, 10-year bond issued on 1 December 2012 with interest payable annually in December Determine the captialization rate of the general borrowings for this construction project in 2017. Show y a our workings. (5 marks) b Determine the total interest be capitalized in 2017 for this construction project. Show your workings. (5 marks) c Prepare the accounting journal entries for this project in 2017 (8 marks) d Should the company offset interest revenue against interest cost when determining the amount of interest to be captialized? Explain your rationale (7 marks)