Current Attempt in Progress
During 2020, Susan Building 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 $8,138,000. The company had the following debt
outstanding at December 31, 2020:
1. 10%, 5-year note to finance construction of various assets, dated January 1, 2020, with interest payable
annually on January 1
2. 12%, ten-year bonds issued at par on December 31, 2014, with interest payable annually on December 31
3. 9%, 3-year note payable, dated January 1, 2019, with interest payable annually on January 1
Compute the amounts of each of the following.
1. Avoidable interest
2. Total interest to be capitalized during 2020
$5,452,000
5,946,000
2,973,000
$
$