Capitalization of borrowing costs During 2014, Tibet Building Company constructed various assets at a total cost of $4.2 million. The weighted-average accumulated expenditures on assets qualifying for capitalization of interest during 2014 were $2.8 million.The company had the following debts outstanding at December 31, 2014: Instructions Calculate the amounts of the following for 2014 (show calculations):
a)avoidable interest,
b)total interest to be capitalized.

Question

Capitalization of borrowing costs During 2014, Tibet Building Company constructed various assets at a total cost of $4.2 million. The weighted-average accumulated expenditures on assets qualifying for capitalization of interest during 2014 were $2.8 million.The company had the following debts outstanding at December 31, 2014:  Instructions Calculate the amounts of the following for 2014 (show calculations): 
a)avoidable interest,
b)total interest to be capitalized.

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The Answer of Capitalization of borrowing costs During 2014, Tibet Building Company constructed various assets at a total cost of $4.2 million. The weighted-average accumulated expenditures on assets qualifying for capitalization of interest during 2014 were $2.8 million.The company had the following debts outstanding at December 31, 2014:  Instructions Calculate the amounts of the following for 2014 (show calculations): 
a)avoidable interest,
b)total interest to be capitalized.

Capitalization of Borrowing Costs During 2014, Tibet Building Company Constructed