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

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,$570,000; March 31,$670,000; June 30,$470,000; October 30 , $810,000. To help finance construction, the company arranged a 10% construction loan on January 1 for $840,000. 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 14% and 10%, 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% )

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