now all supporting computations. Points will be deduel Il you UU HUL JUTJU 1. On March 1, Morris Co. began construction of a small building. The following expenditures were incurred for construction: March 1 S 150.000 April 1 S 148,000 May 1 360,000 June 1 540,000 July 1 200,000 The building was completed and occupied on July 1. To help pay for construction $100,000 was borrowed on March 1 on a 4%, three-year note payable. The only other debt outstanding during the year was a $1,000,000, 6% note issued two years ago. (4 points) (a) Calculate the weighted average accumulated expenditures. (b) Calculate the avoidable interest. (c) Calculate actual interest. (d) What amount of interest should be capitalized as part of the cost of the building? 2. Beeman Company exchanged machinery with an appraised value of $1,755,000, a recorded cost of $2,700,000 and Accumulated Depreciation of S1,350,000 with Lacey Corporation for machinery Lacey owns. Lacey's machinery has an appraised value of $1,695,000, a recorded cost of $3,240,000, and Accumulated Depreciation of S1,782,000. Lacey also gave Beeman $60,000 in the exchange. Assume depreciation has already been updated. Prepare the entries on both companies' books assuming that the exchange had commercial substance. (6 points) Description Date Beeman: Debit Credit Lacey