Reference no: EM132965682
Question - During 2020, MariaBuilding Company constructed various assets at a total cost of $12,600,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2020 were $8,201,000. The company had the following debt outstanding at December 31, 2020:
-10%, 5-year note to finance construction of various assets, dated January 1, 2020, with interest payable annually on January 1 $5,436,000
-12%, ten-year bonds issued at par on December 31, 2014, with interest payable annually on December 31 $5,873,000
-9%, 3-year note payable, dated January 1, 2019, with interest payable annually on January 1 $2,936,500
Required - Compute the amounts of each of the following.
1. Compute the Avoidable interest?
2. Compute the Total interest to be capitalized during 2020?
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: MariaBuilding Company constructed various assets at a total cost of $12,600,000. Compute the Total interest to be capitalized during 2020
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