Case D Robert Sporting Goods Company constructed a building that qualified for interest capitalization. The construction began at the beginning of the 2020 and was completed at the end of the year....

Extracted text: Case D Robert Sporting Goods Company constructed a building that qualified for interest capitalization. The construction began at the beginning of the 2020 and was completed at the end of the year. The construction cost totaled $10 200 000 and the weighted average accumulated expenditure associated with the asset was $6 800 000. Robert Sporting Goods Company had outstanding notes payable during the entire year of construction comprising $6 000 000 8% interest and $9 000 000 9% interest. None of these borrowings were specified for the construction of the qualified asset. Required: Complete the following schedules to calculate the following for 2020: i) Actual interest i) Capitalization rate iii) Avoidable interest iv) Capitalized interest v) Interest expensed vi) Capitalized cost of the building