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Thomas Corporation borrowed $600,000 on December 1, 2018, to finance construction of a new office...

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Accounting

Thomas Corporation borrowed $600,000 on December 1, 2018, to finance construction of a new office building. The interest rate on the loan was 8%. Construction began on January 1, 2019, and the building was completed in March 2020. The following payments were made in 2019 related to the building project: January 1 Purchased the land $120,000 March 1 Made progress payment to contractor 150,000 August 1 Made progress payment to contractor 180,000 December 1 Made progress payment to contractor 90,000 How much of the interest should be capitalized? $24,000 , Not Selected None of these , Not Selected $43,200 , Not Selected $16,600 , Not Selected Correct answer: $26,200

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