Weld Corporation is constructing a plant for its own use. Weld capitalizes interest on an annual basis. The following expenditures are made during the current year: January 1, $36,000; July 1, $348,000; September 1, $960,000; and December 31, $2,532,000. The following debts were outstanding throughout the current year. Debt Construction note, 12% Short-term note payable, 15% Amount $120,000 480,000 Accounts payable (noninterest-bearing) 480,000 Note: Round all of your answers to the nearest whole number or whole percentage point. a. Compute the amount of interest to be capitalized during the year. Calculation of Actual Interest Debt Debt Amount Interest Interest rate Amount Specific Debt Construction loan $ 120000 12% $ 14400 General Debt Note payable $ 410000 15% 61500 Total Actual Interest $ 75900 Calculation of Weighted Average Accumulated Expenditures Weighted Avg. Months Date Expenditures outstanding Accum. Expenditures January 1 $ 36000 12 $ 36000 July 1 348000 6 174000 September 1 960000 4 320000 December 31 2532000 0 0