Exercise 10B-9 (Part Level Submission) on July 31, 2017, Bramble Company engaged Minsk Tooling Company...
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Exercise 10B-9 (Part Level Submission) on July 31, 2017, Bramble Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction was begun immediately and was completed on November 1, 2017. To help finance construction, on July 31 Bramble issued a $298,800, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $201,800 of the proceeds of the note was paid to Minsk on July 31. The remainder of the proceeds was temporarily invested in short-term marketable securities (trading securities) at 10% until November 1. On November 1, Bramble made a final $97,000 payment to Minsk. Other than the note to Netherlands, Amsterdam's only outstanding liability at December 31, 2017, is a $31,400, 8%, 6-year note payable, dated January 1, 2014, on which interest is payable each December 31. Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2017. Interest revenue Weighted-average accumulated expenditures Avoidable interest Interest capitalized
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