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During 2020, GR Engineering Company constructed a building for its own use at a total cost...

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Accounting

During 2020, GR Engineering Company constructed a building forits own use at a total cost of $14,700,000.

The weighted average accumulated expenditures on assetsqualifying for capitalization of interest during 2020 were$10,200,000. The company had the following debt outstanding atDecember 31, 2020: 1. 10%, 5-year note to finance construction ofthis building, dated January 1, 2020, with interest payableannually on January 1 $6,300,000 2. 12%, ten-year bonds issued atpar on December 31, 2014, with interest payable annually onDecember 31 7,000,000 3. 9%, 4-year note payable, dated January 1,2019, with interest payable annually on January 1 3,500,000 Computethe amounts of each of the following (show computations). 1.Avoidable interest 2. Actual interest 3. Total interest to becapitalized during 2020 ?

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