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11-Capitalization of interest. On March 1, Mocl Co. began construction of a small building. The...

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11-Capitalization of interest. On March 1, Mocl Co. began construction of a small building. The following expenditures were incurred for construction: March 1 300,000 May 1 July 1 400,000 April 1 296,000 June 1 1,080,000 720,000 The building was completed and occupied on July 1. To help pay for construction $200,000 was borrowed on March 1 on a 12%, three-year note payable. The only other debt outstanding during the year was a $2.000,000, 10% note issued two years ago. Instructions (a) Calculate the weighted-average accumulated expenditures. (b) Calculate avoidable interest. 12-Nonmonetary exchange A machine cost $300,000, has annual depreciation expense of $60,000, and has accumulated depreciation of $150,000 on December 31, 2017. On April 1, 2018, when the machine has a fair value of $120,000, it is exchanged for a similar machine with a fair value of $360,000 and the proper amount of cash is paid. The exchange lacked commercial substance. Instructions Prepare all entries that are necessary at April 1, 2018

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