Hawkins Corporation began construction of a motel on March 31, 2016. The project was completed...
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Accounting
| Hawkins Corporation began construction of a motel on March 31, 2016. The project was completed on April 31, 2017. No new loans were required to fund construction. Hawkins does have the following two interest-bearing liabilities that were outstanding throughout the construction period: |
| $ 4,900,000, 6% note |
| $22,660,000, 10% bonds |
| Construction expenditures incurred were as follows: |
| March 31, 2016 | $4,810,000 |
| June 30, 2016 | 6,810,000 |
| November 30, 2016 | 1,962,000 |
| February 28, 2017 | 3,810,000 |
| The companys fiscal year-end is December 31. |
Required:
| Calculate the amount of interest capitalized for 2016 and 2017. (Round weighted average interest rate to 2 decimal places and final answers to the nearest whole dollar.) | |||||||||
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