Question: Q 5 . During 2 0 2 3 , Nate Building Company constructed various assets at a total cost of $ 8 , 4 0

Q5. During 2023, Nate Building Company constructed various assets at a total cost of $ 8,400,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2023 were $ 5,600,000. The company had the following debt outstanding at December 31,2023 : a.10%,5-year note to finance construction of various assets, dated January 1,2023, with interest payable annually on January 1 $ 3,600,000 b.12%, ten-year bonds issued at par on December 31,2018, with interest payable annually on December 31 c.9%,3-year note payable, dated January 1,2022, with interest payable annually on January 1 Instructions: Compute the following amounts: [1] Actual interest during 2023.[2] Avoidable interest on construction. [3] Total interest to be capitalized during 2023.

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