Help Save & Exit Submit 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, $700,000; March 31, $800,000; June 30, $600,000; October 30, $1,200,000. The company arranged a 8% loan on January 1 for $1,100,000. Assume the $1,100,000 loan is not specifically tied to the construction of the building. The company's other borrowings, outstanding for the whole year, consisted of a $7 million loan and a $9 million note with interest rates of 10% 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 (.e. 0.1234 should be entered as 12.34%).) Date January 1, 2021 March 31, 2021 June 30, 2021 October 30, 2021 Accumulated expenditures Expenditure 700,000 800,000 600,000 1,200,000 $ 3,300,000 Weight 12/12 = 9/12 = 6/12 = 2/12) = Average $ 700,000 600,000 300,000 200,000 $ 1,800,000 Average Interest Rate Capitalized Interest $ Average accumulated expenditures Construction loan Other loans (not construction) 1,800,000 | 1,100,000 8.00% $ = = 88,000 0 88,000 $