Early in 20X3, Popeil Corporation engaged Magic Fish, Inc. to design and construct a manufacturing...
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Early in 20X3, Popeil Corporation engaged Magic Fish, Inc. to design and construct a manufacturing facility. Construction was begun on June 30, 20X3 and as completed on December 31, 20X3. Popeil made payments on July 1, August 31 and December 31. Total payments for the year were $9.000.000. The weighted average accumulated expenditures for the year were $4,000,000 In order to help finance the construction, Popeil issued the a $3,000,000, 5-year, 8% note payable, at par, on June 30, 20X3, with interest payable annually on June 30. In addition to the note payable, the only other debt outstanding during 20x3 was a $10,000,000, 10% bond payable dated January 1 20X0 and due January 1, 20X9, with interest payable annually on January 1. Compute each of the following for 20X3. Please show computations and circle your answers, 1. Avoidable Interest for 20X3 2. Actual interest for 20X3 3. Total amount of interest cost to be capitalized
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