Question 4 Indigo Inc. is a book distributor that had been operating in its original facility since 1987. The increase in certification programs and continuing education requirements in several professions has contributed to an annual growth rate of 15% for Indigo since 2012 Indigo' original facility became obsolete by early 2017 because of the Increased sales volume and the fact that Indigo now carries CDs in addition to books. On June 1,2017, Indigo contracted with Black Construction to have a new building constructed for $5,120,000 on land owned by Indigo. The payments made by Indigo to Black Construction are shown in the schedule below. Amount July 30, 2017 $1,152,000 January 30,2018 1.920,000 May 30, 2018 2048,000 Total payments $5120.000 Date Construction was completed and the building was ready for occupancy on May 27,2018. Indigo had no new borrowings directly associated with the new building but had the following debt outstanding at May 31, 2018, the end of its fiscal year 10%, 5-year note payable of S2560000, dated April 1, 2014, with interest payable annually on April 1. 12%, 10-year bond issue of $3,840,000 sold at par on June 30, 2010, with interest payable annually on June 30. | The new building qualifes for interest capitalization. The effect of capitalizing the interest on the new building, compared with the effect of expensing the interest, is material. Compute the weighted-average accumulated expenditures on Indigo's new building during the capitalization perlod Weighted-Average Accumulated Expenditures $ Compute the avoidable interest on Indigo's new building. (Round intermediate percentage calculation to 1 decinal place eg 156% and final answer to O decimal places, eg. 5,125) Avoidable Interest Some interest cost of Indigo Inc. Is capitalized for the year ended May 31,2018.Compute the amount of each ltems that must be disclosed in Indigo's financial statements Total actual interest cost $ Total Interest capitaized Total interest expensed $ Attempts: 0 of 5 used Save for Later Check