On July 31, 2017, Coronado Company engaged Minsk Tooling Companyto construct a special-purpose piece of factory machinery.Construction was begun immediately and was completed on November 1,2017. To help finance construction, on July 31 Coronado issued a$303,600, 3-year, 12% note payable at Netherlands National Bank, onwhich interest is payable each July 31. $208,600 of the proceeds ofthe note was paid to Minsk on July 31. The remainder of theproceeds was temporarily invested in short-term marketablesecurities (trading securities) at 10% until November 1. OnNovember 1, Coronado made a final $95,000 payment to Minsk. Otherthan the note to Netherlands, Coronado’s only outstanding liabilityat December 31, 2017, is a $28,200, 8%, 6-year note payable, datedJanuary 1, 2014, on which interest is payable each December 31.
Collapse question part
(a)
Calculate the interest revenue, weighted-average accumulatedexpenditures, avoidable interest, and total interest cost to becapitalized during 2017.
Interest revenue
$
Weighted-average accumulated expenditures
$
Avoidable interest
$
Interest capitalized
$
