Early in 2025, Dobbs Corporation engaged Kiner, Inc, to design and construct a complete modernization...
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Early in 2025, Dobbs Corporation engaged Kiner, Inc, to design and construct a complete modernization of Dobbs's manufacturing facility. Construction began on june 1, 2025 and was completed on December 31, 2025. Dobbs made the following payments to Kiner, inc. during 2025: To help finance the construction, Dobbs issued the following during 2025 : 1. $1,700,000 of 10-year, 94 bends payable, issued at par on May 31, 2025, with interest payable annually on May 31. 2. 300,000 shares of no-par cammon stock, bsued at 510 per share on October 1, 2025. In addition to the 9 bonds payable, the only debt outstanding during 2025 was a 5425,000, 12\% note payable dated january 1, 2024 and due janulary 1, 2025, with interest payable annually on january 1. Instructions Compute the amounts of each of the following (show computations): 1. Weighted-average accumulated expenditures qualifying for captalization of interest cost. 2. Avoidable interest incurred during 2025. 3. Totat amount of interest cost to be capitalized during 2025
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