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Helpi A company constructs a building for Its own use. Construction began on January 1...

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Accounting

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Helpi A company constructs a building for Its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $630,000; March 31, $730,000; June 30, $530,000, October 30, $990,000. To help finance construction, the company arranged a 8 % construction loan on January 1 for $960,000. The company's other borrowings, outstanding for the whole year, consisted of a $4 million loan and a $6 million note with interest rates of 13% and 7% , respectively Assuming the company uses the specific interest method, calculate the amount of interest capitalized for the year (Do not round Intermediate calculations. Round your percentage answers to 2 decimal places (l.e. 0.1234 should be entered as 12.34 % ).) 630,000 12/12 630,000 January 1 March 31 730.000 9/12 547 500 June 30 530,000 6/12 265,000 October 30 Accumulated expenditures 2/12 165.000 990,000 $1,607,500 2880,000 Capitalized Interest Interest Rate Average S1,607 500 960.000 Average acoumulated expenditures Construction loan 800% 76.800 0 % 76 800 All loans Constructon loan Other loans (not construction) Next 10 of 12

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