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Early in 2020, Dobbs Corporation engaged Kiner, inc, to design and construct a complete modernization of Dobbs's manufacturing facility, Construction was begun on June 1.2020

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Early in 2020, Dobbs Corporation engaged Kiner, inc, to design and construct a complete modernization of Dobbs's manufacturing facility, Construction was begun on June 1.2020 and was completed on December 31.2020. Dobbis made the following payments to Kiner, Inc, during 2020: In order tohelp finance the construction, Dobbs issued the following during 2020 : 1. 51,734,000 of 10 year, 9 bonds payable, issued at par on May 31, 2020 , with interest payable annualiy on May 31. 2. 300.000 shares of no-par common stock, issued at $10 per share on October 1,2020 . In addition to the 98 bonds payable, the only debt outstanding during 2020 was a $439,500,12% note pryable dated jancary 1.2016. and due fanuary 1. 2023, with interest payable annually on danuary 1. Compute the amokints of each of the following: 1. Wrighted-averabe accimulated expenditures qualifyine for copitalization of interest cost. 2. Avoldabla interest incurred during 2020. In order to help finance the construction, Dobbs issued the following during 2020: 1. $1,734,000 of 10 -year, 9% bonds payable, issued at par on May 31, 2020, with interest payable annually on May 31. 2. 300.000 shares of no-par common stock, issued at $10 per share on October 1,2020. In addition to the 9% bonds payable, the only debt outstanding during 2020 was a $433,500,12% note payable dated January 1,2016 and due January 1, 2023, with interest payable annually on January 1 . Compute the amounts of each of the following: 1. Weighted-average accumulated expenditures qualifying for capitalization of interest cost. 2. Avoidable interest incurred during 2020. 3. Total amount of interest cost to be capitalized during 2020. 1. Weighted-average accumulated expenditures 5 2. Avaidable interest 3. Armount of interest cost to be capitalized 5

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