The following information pertains to Our Company's self-constructed building project: 2019 Payments: 2/28 5/1 7/1 11/30 Specific construction debt; $500,000, 6%, 5-year note, dated 12/31/18, interest paid annually on 12/31 250,000 300,000 450,000 600,000 1,600,000 WAAE: Other debt: $1,000,000, 5%, annual interest paid 12/31, dated 12/31/18 $1,500,000, 9%, 10 year bonds, dated 12/31/17, interest paid 12/31 annually at year end Weighted Avg 208,333 200,000 225,000 50,000 683,333 2/28 5/1 7/1 11/30 months 10 8 6 1 250,000 300,000 450,000 600,000 1,600,000 WAIR: 5% 1,000,000 1,500,000 2,500,000 9% 50,000 135,000 185,000 0.074 WAIR Actual Interest: 500,000 1,000,000 1,500,000 3,000,000 6% 5% 9% 30,000 50,000 135,000 215,000 Avoidable Interest: Construction 500,000 183,333 WAAE 683,333 6% 7.4% 30,000 13,567 43,567 Avoidable 4. The following information pertains to Our Company's self-constructed building project Our Company is building a project for its own use. We have been asked to calculate the amount of interest to be capitalized. Specific construction debt: $1,200,000, 4%, 5-year note, dated 12/31/18, interest paid annually on 12/31 2020 Payments: 1/31/20 615,000 12/28/20 600,000 6/1/20 960,000 12/1/20 825,000 3,000,000 Other debt: $1,125,000, 6%, annual interest paid 12/31, dated 12/31/18 $1,350,000, 9%, 10 year bonds, dated 12/31/17, Interest paid 12/31 a. How much is the weighted average of the accumulated expenditures? b.1 How much is the weighted average of the interest rates on other debt? c! How much is the avoidable interest? d. How much is the actual interest? e. How much is recorded as the interest expense? f. How much interest should be capitalized? - - - -- 1 1 - 1 - - 1 1 1 1 The following information pertains to Our Company's self-constructed building project: 2019 Payments: 2/28 5/1 7/1 11/30 Specific construction debt; $500,000, 6%, 5-year note, dated 12/31/18, interest paid annually on 12/31 250,000 300,000 450,000 600,000 1,600,000 WAAE: Other debt: $1,000,000, 5%, annual interest paid 12/31, dated 12/31/18 $1,500,000, 9%, 10 year bonds, dated 12/31/17, interest paid 12/31 annually at year end Weighted Avg 208,333 200,000 225,000 50,000 683,333 2/28 5/1 7/1 11/30 months 10 8 6 1 250,000 300,000 450,000 600,000 1,600,000 WAIR: 5% 1,000,000 1,500,000 2,500,000 9% 50,000 135,000 185,000 0.074 WAIR Actual Interest: 500,000 1,000,000 1,500,000 3,000,000 6% 5% 9% 30,000 50,000 135,000 215,000 Avoidable Interest: Construction 500,000 183,333 WAAE 683,333 6% 7.4% 30,000 13,567 43,567 Avoidable 4. The following information pertains to Our Company's self-constructed building project Our Company is building a project for its own use. We have been asked to calculate the amount of interest to be capitalized. Specific construction debt: $1,200,000, 4%, 5-year note, dated 12/31/18, interest paid annually on 12/31 2020 Payments: 1/31/20 615,000 12/28/20 600,000 6/1/20 960,000 12/1/20 825,000 3,000,000 Other debt: $1,125,000, 6%, annual interest paid 12/31, dated 12/31/18 $1,350,000, 9%, 10 year bonds, dated 12/31/17, Interest paid 12/31 a. How much is the weighted average of the accumulated expenditures? b.1 How much is the weighted average of the interest rates on other debt? c! How much is the avoidable interest? d. How much is the actual interest? e. How much is recorded as the interest expense? f. How much interest should be capitalized? - - - -- 1 1 - 1 - - 1 1 1 1