Question: 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

A company constructs a building for its own use. Construction began

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, $600,000; March 31, $700,000; June 30, $500,000; October 30, $900,000. To help finance construction, the company arranged a 9% construction loan on January 1 for $900,000. 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 11% and 6%, respectively Assuming the company uses the specific interest method, calculate the amount of interest capitalized for the year. (Do not round intermediate calculations. Round your percentage answers to 2 decimal places (i.e. 0.1234 should be entered as 12.34%).) Date Expenditure Weight Average January 1 March 31 June 30 October 30 Accumulated expenditures Capitalized Interest Average Interest Rate Average accumulated expenditures $

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