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Would like answers along with a short explanation of each answer. Cougar Co. built a warehouse during Years 2 and 3. The following payments were
Would like answers along with a short explanation of each answer.
Cougar Co. built a warehouse during Years 2 and 3. The following payments were made during construction for building materials, labor, and overhead: January 1, Year 2 $130,000 April 1, Year 2 $240,000 October 1, Year 2 January 15, Year 3 $200,000 $350,000 In addition, Cougar: Borrowed $300,000 at 12% on January 1, Year 2, under a construction note Had bonds outstanding of $100,000 at 10%, on January 1, Year 2; interest is payable annually on December 31 Had notes payable outstanding of $300,000 at 7% on January 1, Year 2; interest is payable annually on December 31 Completed construction on the building, which was ready for immediate use on March 1, Year 3 For each of the items below, click in the associated cell and enter the applicable dollar value. Round all amounts to the nearest dollar. If the amount is zero, enter a zero (0). A B 1 Items Amount 2 The weighted average accumulated expenditures for Year 2 123 3 The interest incurred for all borrowings for Year 2 123 4 The avoidable interest for Year 2 123 5 The interest capitalized for Year 2 6 The interest expense for Year 2 123Step by Step Solution
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