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

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Accounting

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On January 1, 2021, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The only interest-bearing debt the company had outstanding during 2021 was long-term bonds with a book value of $11,500,000 and an effective interest rate of 10%. Construction expenditures incurred during 2021 were as follows: January 1 March 1 July 31 September 30 December 31 $650,000 690,000 570,000 750,000 450,000 Required: Calculate the amount of interest capitalized for 2021. Date Expenditure Weight Average x = = January 1 March 1 July 31 September 30 December 31 Accumulated expenditure Amount Interest Rate Capitalized Interest Average accumulated expenditures %

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