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USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (3) QUESTIONS: On January 1, 2012, ABC borrowed \$1,200,000 at 10% payable annually to finance the construction of a new building.  In 2012, the company began construction on March 1 and made the following expenditures throughout the year: March 31 \$260,000 June 1 \$750,000 July 1 \$1,300,000 Nov 1 \$1,200,000 The building was completed on December 31, 2012.  Additional information is provided below: 1.

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USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (3) QUESTIONS: On January 1, 2012, ABC borrowed \$1,200,000 at 10% payable annually to finance the construction of a new building.  In 2012, the company began construction on March 1 and made the following expenditures throughout the year: March 31 \$260,000 June 1 \$750,000 July 1 \$1,300,000 Nov 1 \$1,200,000 The building was completed on December 31, 2012.  Additional information is provided below: 1.  Other Debt consisted of a \$4,000,000, 10-year, 12% bond with interest payable annually; and a \$1,600,000, 6-year, 9% note  with interest due annually.  Both the Bond and Note were outstanding for all of 2012.  (Note:  When determining your average interest rate, round to two decimal places.  If your average interest is .14374, use 14.37%.) Required: a. Determine the original cost of the building (round your answer up to the nearest whole dollar):    \$[BLANK_1] Answer 0.6667 points Question 2   Use the information presented in #1 above to answer the next question: b. Determine Interest Expense for 2012 (round your answer to the nearest whole dollar):  \$[Blank_2] Answer 0.6667 points Question 3   Using the information presented in #1 above, answer the following question: c. If instead, ABC had only \$200,000 of other debt outstanding inclurring interest at 12% APR, determine how much interest can be capitalized:  \$[Blank_3] Answer 0.6666 points Question 4   USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (3) QUESTIONS: Lambert Co. acquired a machine on June 30, 2013 and gave the seller \$20,000 cash down and a two year non-interest bearing note calling for four semi-annual payments of \$25,000 each, with the first payment beginning on December 31, 2013. The prevailing rate of interest was 12% APR. Lambert recorded the purchase as follows: Account Title Debit Credit Machine 120,000 Note Payable 100,000 Cash 20,000 Lambert uses the straight-line method to depreciate its equipment…

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