Please help me to solve this problem Current Attempt in ProgressIn early February 2020, Pina Corp. began construction of an addition to its head office building that is expected to take 18 months tocomplete. The following 2020 expenditures relate to the addition:Feb. 1Mar. 1July 1Dec. 1Dec. 31Payment #1 to contractorPayment to architectPayment #2 to contractorPayment #3 to contractorAsset carrying amount$126,00027,00056.900Amount of interest $180,000$389,900On February 1, Pina issued a $108,000, three-year note payable at a rate of 10% to finance most of the initial payment to thecontractor. No other asset-specific debt was entered into. Details of other interest-bearing debt during the period are provided in thetable below:Other Debt Instruments Outstanding-20208%, 15-year bonds, issued May 1, 2005, matured May 1, 20208%, 10-year bonds, issued June 15, 20146%, 12-year bonds, issued May 1, 2020Principal amount$303,000$497,000$303.000What amount of interest should be capitalized for the fiscal year ending December 31, 2020, according to IAS 23? (Do not roundintermediate calculations. Round capitalization rate to 2 decimal places, e.g. 52.75% and final answer to O decimal places, e.g. 5,275.)

Determination of Capitalized Rate : Other Debt Instruments Outstanding-2020 Principal Weight…

Answered: Please help me to solve this problem

Business

Accounting

Please help me to solve this problem

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 9P

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