During 2013, Blue Build Company constructed various assets at a total cost of 8,800,000. The weighted...

 

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During 2013, Blue Build Company constructed various assets at a total cost of £8,800,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2013 were £5,200,000. The company had the following debt outstanding at December 31, 2013: 1. 10%, 5-year note to finance construction of various assets, dated January 1, 2013, with interest payable annually on January 1 2. 12%, ten-year bonds issued at par on December 31, 2005, with interest payable annually on December 31 3. 9%, 3-year note payable, dated January 1, 2011, with interest payable annually on January 1 Instructions Compute the amounts of each of the following (show computations). 1. Avoidable interest. 2. Total interest to be capitalized during 2013. €3,200,000 1,000,000 4,000,000 During 2013, Blue Build Company constructed various assets at a total cost of £8,800,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2013 were £5,200,000. The company had the following debt outstanding at December 31, 2013: 1. 10%, 5-year note to finance construction of various assets, dated January 1, 2013, with interest payable annually on January 1 2. 12%, ten-year bonds issued at par on December 31, 2005, with interest payable annually on December 31 3. 9%, 3-year note payable, dated January 1, 2011, with interest payable annually on January 1 Instructions Compute the amounts of each of the following (show computations). 1. Avoidable interest. 2. Total interest to be capitalized during 2013. €3,200,000 1,000,000 4,000,000

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