QUESTION 10 Use the information below for the following three questions Benzema Co. signed an agreement with a contractor to have a production facility built. The construction started on 01/01/2020 and continued until 06/01/2021. Benzema borrowed a bank loan to be used in financing of the construction. The following information on Benzema's bank loans is available: Annual Date Borrowed Amount ( Interest Rate Term Specific Construction Ipan 12/31/2019 1,000,000 7 percent 4 years Other Loan 10/10/2018 700,000 8 percent 9 years Other Loan 12/17/2016 2,800,000 10 percent 7 years During the construction, Benzema incurred the following costs in the construction of the facility Expenditure Date Expenditure Amount ($) 01/01/2020 900,000 05/01/2020 240,000 08/01/2020 960,000 05/01/2021 200,000 06/01/2021 160,000 Det Beco At Speelfie Cotion Loan 12/31/2019 1,000,000 7 percent Other Lan 10/10/2016 700,000 & peccent Other Lan 12/17/2016 2,800,000 10 percent 7 During the construction, Benzema incuced the following costs in the construction of the facility Espenditure Date Expenditure Amount() 01/01/2020 900,000 05/01/2020 240,000 08/01/2020 960,000 05/01/2021 200,000 06/01/2021 160,000 How much interest cost should Benzema capitalize in 20207 $406,000 $116,282 $114,160 $73,280 Herema capitalire in 20207 406,000 $116,282 $114,160 $73.280 QUESTION 11 Assurning Benzema makes adual interest payments in January of the next fiscal year, what is the balance sheet effect of the journal entry at December 31, 2020 to record interest costs? Assets - Decrease: Liabilities - Decrease: Equity. Decrease Assets - Increase: Liabilities - No effect: Equity. Increase Assets - Increase Liabilities - Increase; Equity Decrease Assets - Decrease: Liabilities. No effect; Equity. Decrease QUESTION 12 How much interest cost should Benzema capitalize in 2021? $81,347 $79,333 $74,161 $73,018