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  3. on january 1, 2021, the highlands company began co

On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for...

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Accounting

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On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The company borrowed $1,700,000 at 9% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021: $6,000,000, 14% bonds $4,000,000, 9% long-term note Construction expenditures incurred during 2021 were as follows: $ January 1 March 31 June 30 September 30 December 31 620,000 1,220,000 824,000 620,000 420,000 Required: Calculate the amount of interest capitalized for 2021 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%).) Expenditure Weight Average Date January 1 March 31 June 30 September 30 December 31 Accumulated expenditure Average Interest Rate Capitalized Interest Average accumulated expenditures

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