A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $670,000; March 31, $770,000; June 30, $570,000; October 30, $1,110,000. The company arranged a 8% loan on January 1 for $1,040,000. Assume the $1,040,000 loan is not specifically tied to the construction of the building. The companys other borrowings, outstanding for the whole year, consisted of a $4 million loan and a $6 million note with interest rates of 9% and 6%, respectively.

A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $670.000: March 31, $770,000: June 30, $570,000: October 30, $1,110,000. The company arranged a 8% loan on January 1 for $1.040,000. Assume the $1.040,000 loan is not specifically tied to the construction of the building. The company's other borrowings, outstanding for the whole year, consisted of a $4 million loan and a $6 million note with interest rates of 9% and 6%, respectively. Assuming the company uses the weighted-average method, calculate the amount of interest capitalized for the year. (Do not round Intermediate calculations. Round your percentage answer to 2 decimal places (1.e. 0.1234 should be entered as 12.34%).) Date January 1, 2021 March 31, 2021 June 30, 2021 October 30, 2021 Accumulated expenditures Answer is complete but not entirely correct. Expenditure Weight Average IS 670,000 12/12 IS 670.000 770.000 9/12 577.500 570.000 6/12 285,000 1.110,000 2/12 185.000 $ 3,120.000 $ 1,717,500 Amount Interest Rate Capitalized Interest s 1,717,500 Average accumulated expenditures All loans All loans 1,040,000 X IS 9.00 X % 6.00 % % 93.600 0 93.600 IS