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Zimmerman Corporation approved the expansion of their Longview, Texas plant. In conjunction with the expansion,...

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Accounting

Zimmerman Corporation approved the expansion of their Longview, Texas plant. In conjunction with the expansion, the company borrowed $300,000 at 8% interest from First Cowboys Bank on January 1, 2019. Additionally, the company has other debt including a $100,000 (14%) note and $250,000 (10%) bond. Construction began on the new plant on January 1, 2019 and the following expenditures were incurred prior to the completion of the plant on December 31, 2019: February 1, 2019 $150,000 July 1, 2019 $200,000 November 1, 2019 $500,000 Based on the information provided above, determine the (a) the amount of interest to be capitalized and (b) the amount of interest to be expensed.

How much interest should be capitalized? $_______________________

How much interest should be expensed? $________________________

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