Earlyin2012,DobbsCorporation engagedKiner,Inc.todesignandconstructa completemodernizationofDobbs's manufacturing
facility.Constructionwasbegunon June1,2012andwascompleted onDecember 31, 2012.DobbsmadethefollowingpaymentstoKiner,Inc.during2012:
August 31, 2012 7,200,000
1. $4,000,000of10-year,9%bondspayable,issuedatparonMay31,2012with interest payableannually onMay31.
Inaddition tothe9%bondspayable, theonlydebtoutstandingduring 2012wasa
$1,000,000,12%notepayabledatedJanuary1,2008anddueJanuary1,2018 with interest payableannually onJanuary1.
1. Weighted-averageaccumulatedexpenditures qualifying forcapitalizationofinterest cost.
2. Avoidableinterest incurred during2012.
3. Totalamount ofinterestcosttobecapitalizedduring2012.
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