Chapter 8 problem: 1- Gross profit method. On December 31,2010 Felt Company's inventory burned. Sales for the year had been $1,400,000 and $980,000,respectively. The beginning inventory (January.1,2010)was $170,000,in the past Felt's gross profit has averaged 40%of selling price. Instructions:- Compute the estimated cost of inventory burned give entries as of December31,2010to close merchandise. Chapter 9 problem:- Capitalization of interest On March 1,Mocl Co. began construction of a small building. The following expenditures were incurred for construction: March1 $75,000 April1 $74,000 March1 $180,000. June1 $270,000 July1. $100,000. The building was completed on july1 . to help pay for construction$50,000 was borrowed on March 1 on a 12%three-year note payable. The only other debt outstanding during the year was $500,000,10% note issued two years ago. Instruction:- 1-Calculate the weighted- average accumulated expenditures. 2- calculate avoidable interest.