Whit Company spent a total of $300,000 cash on a construction project during 2018 and 2019....
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Whit Company spent a total of $300,000 cash on a construction project during 2018 and 2019. During 2020, Whit spends an additional $600,000 evenly during the year on the project and completes construction at the end of 2020. Debt outstanding during 2020 follows. Debt Amount Accounts payable average balance $50,000 10% bond payable 700,000 12% construction loan 200,000 a. Compute the amount of interest to be capitalized in 2020. b. Calculate the amount of interest to expense in 2020. $4 Whit Company spent a total of $300,000 cash on a construction project during 2018 and 2019. During 2020, Whit spends an additional $600,000 evenly during the year on the project and completes construction at the end of 2020. Debt outstanding during 2020 follows. Debt Amount Accounts payable average balance $50,000 10% bond payable 700,000 12% construction loan 200,000 a. Compute the amount of interest to be capitalized in 2020. b. Calculate the amount of interest to expense in 2020. $4
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