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On January 1,2024 , the Highlands Company began construction on a new manufacturing facility for...

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Accounting

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On January 1,2024 , the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2025 . 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 2024 : $9,000,000,12% bonds $6,000,000,7% long-term note Construction expenditures incurred during 2024 were as follows: Required: Calculate the amount of interest capitalized for 2024 using the specific interest method. Note: Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e, 0.123 should be entered as 12.3% ). Calculate the amount of interest capitalized for 2024 using the specific interest method. Note: Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 sho as 12.3%)

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