Question: A company constructs a building for its own use. Construction began on January 1 and ended on December 3 0 . The expenditures for construction

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, $580,000; March 31,$680,000; June 30,$480,000; October 30,$840,000. To help finance
construction, the company arranged a 7% construction loan on January 1 for $860,000. 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 8% and 6%, respectively.
Assuming the company uses the specific interest method, calculate the amount of interest capitalized for the year.
Note: Enter your answers in whole dollars and not in millions. Do not round intermediate calculations. Round your percentage
answers to 2 decimal places (i.e.0.1234 should be entered as 12.34%).
A company constructs a building for its own use. Construction began

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