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

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Accounting

On January 1, 2018, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2019. The only interest-bearing debt the company had outstanding during 2018 was long-term bonds with a book value of $12,000,000 and an effective interest rate of 10%. Construction expenditures incurred during 2018 were as follows: January 1 $ 700,000 March 1 720,000 July 31 600,000 September 30 800,000 December 31 500,000 Required: Calculate the amount of interest capitalized for 2018

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