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  3. on january 1, 2018, the highlands company began co

On January 1, 2018, the Highlands Company began construction on a new manufacturing facility for...

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Accounting

On January 1, 2018, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2019. The company borrowed $1,800,000 at 7% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2018:

$9,000,000, 12% bonds
$6,000,000, 7% long-term note

Construction expenditures incurred during 2018 were as follows:

January 1 $ 780,000
March 31 1,380,000
June 30 1,016,000
September 30 780,000
December 31 580,000

Required:image

Required Calculate the amount of interest capitalized for 2018 using the specific interest method. (Do not round the intermediate calculations Round your percentage answers to 1 decimal place (i.e. 0.123 should be entered as 12.3%).) Date Expenditure Weight Average January 1 March 31 June 30 September 30 December 31 Accumulated expenditure Capitalize Interest Average Interest Rate Average accumulated expenditures $

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