VII. Capitalization of Interest. -12 points Early in 2015, Dobbs Corporation chose to self-construct a new manufacturing facility. Construction was begun on January 31, 2015 and was completed on December 31, 2015. Dobbs incurred the following expenditures during 2015: Date Payment January 2, 2015 $1,000,000 March 31, 2015 $1,200,000 June 1, 2015 $3,600,000 August 31, 2015 $5,400,000 December 31, 2015 $4,500,000 In order to help finance the construction, Dobbs issued the following during 2015: $3,000,000 of 10-year, 9% bonds payable, issued at par on February 28, 2015, with interest payable annually on February 28. In addition to the 9% bonds payable, the other debt outstanding during 2015 was an $1,000,000, 12% note payable dated January 1, 2006 and due January 1, 2016, with interest payable annually on January 1 and a $2,000,000, 10% note payable dated January 1, 2008, due January 1, 2018, with interest payable January 1. -i Instructions Compute the amounts of each of the following (show computations): 1. Weighted average accumulated expenditures qualifying for capitalization of interest cost. 2. Avoidable interest incurred during 2015 (Assume your answer to 1 above is $5,000,000). 3. Total amount of interest cost to be capitalized during 2015. 4. Record the journal entry to recognize interest on December 31, 2015