Early in 2015, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete moderniza… 1 answer below »
Early in 2015, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs’s manufacturing facility. Construction was begun on June 1, 2015 and was completed on December 31, 2015 Dobbs made the following payments to Kiner, Inc. during 2015: In order to help finance the construction. Dobbs issued the following during 2015: $5,000,000 of 10-year, 9% bonds payable, issued at par on May 31, 2015, with interest payable annually on May 31. In addition to the 9% bonds payable, Dobbs has the following debt outstanding during 2015: $1,250.000, 12% note payable dated January 1.2010 and due January 1,2020, with interest payable annually on January 1. Compute the amounts of each of the following (show computations): Weighted-average accumulated expenditures qualifying for capitalization of interest cost Avoidable interest incurred during 2015.
