A company began construction of a new build ing in 2021. The building completed and ready...

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A company began construction of a new build ing in 2021. The building completed and ready for use on December 31, 2021. The following pertains to the construction of the building: was information Expenditures for Construction $2,000,000 Date April 1 3,000,000 August 1 3,900,000 ing has November 30 To help finance the construction, the company borrowed $3,000,000 on March 1, at an interest rate of 9%. The company had the following loans outstanding all year: $5,000,000 @ 10% 4,000,000 @ 11% Compute the amount of interest to be capitalized on the construction (round all computations to the nearest whole dollar). Briefly explain why you capitalized the dollar amount that you did. A company began construction of a new build ing in 2021. The building completed and ready for use on December 31, 2021. The following pertains to the construction of the building: was information Expenditures for Construction $2,000,000 Date April 1 3,000,000 August 1 3,900,000 ing has November 30 To help finance the construction, the company borrowed $3,000,000 on March 1, at an interest rate of 9%. The company had the following loans outstanding all year: $5,000,000 @ 10% 4,000,000 @ 11% Compute the amount of interest to be capitalized on the construction (round all computations to the nearest whole dollar). Briefly explain why you capitalized the dollar amount that you did.

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