Capitalizing interest on the new factory: a) during the year, frosty co. paid all of the interest accrued on bond a and loan 1, but only $50,000 of the interest accrued and due on loan 2. using one journal entry, summarize how frosty originally recorded the accrued interest on all three long-term debts. b) assume that john and elsa are right that the new loan meets the standards for capitalizing interest, but the amount of capitalizable interest is only $28,392. what correcting entries would need to be made to properly record interest on frosty co.’s construction project? (hint: assume that frosty co.’s income tax rate is 30 percent. any necessary changes to frosty company’s taxes triggered by your adjustment should affect income tax expense and income tax payable.) c) what would be the net effect of each of these interest adjustments on net income? what would be the net effect on eps