requirement 1

requirement 2

requirment 3

Nash Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $5,400,000 on March 1,$3,600,000 on June 1, and $9,000,000 on December 31 . Nash Company borrowed $3,000,000 on March 1 on a 5-year, 10\% note to help finance construction of the building. In addition, the company had outstanding all year a 12%,5-year, $6,000,000 note payable and an 11%, 4-year, $10,500,000 note payable. Compute avoidable interest for Nash Company. Use the weighted-average interest rate for interest capitalization purposes. (Round "Weighted-average interest rate" to 4 decimal places, e.g. 0.2152 and final answer to 0 decimal places, e.g. 5.275.) Avoidable interest On December 31. 2019, Sweet Inc. borrowed $3,900,000 at 12% payable annually to finance the construction of a new building. In 2020 , the company made the following expenditures related to this building: March 1,$468,000; June 1,$780,000; July 1,$1,950,000; December 1,$1,950,000. The building was completed in February 2021. Additional information is provided as follows. (a) Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building. The amount of interest Situation I On January 1, 2020, Bonita, Inc. signed a fixed-price contract to have Builder Associates construct a major plant facility at a cost of $4,471,000. It was estimated that it would take 3 years to complete the project. Also on January 1, 2020, to finance the construction cost, Bonita borrowed $4,471,000 payable in 10 annual installments of $447,100, plus interest at the rate of 10%. During 2020 , Bonita made deposit and progress payments totaling $1,676,625 under the contract; the weighted-average amount of accumulated expenditures was $894,200 for the year. The excess borrowed funds were invested in short-term securities, from which Bonita realized investment income of $265,300. What amount should Bonita report as capitalized interest at December 31,2020 ? Capitalized interest