Interest During Construction Alta Company is constructing a production complex that qualifies for interest capitalization. The following information is available: - Capitalization period: January 1, 2019, to June 30, 2020 - Expenditures on project: 2019: - Amounts borrowed and outstanding: $1.7 miliion borrowed at 10%, specifically for the project $5 million borrowed on July 1,2018 , at 12% $11 million borrowed on January 1,2017 , at 6% Required: Note: Round all final numeric answers to two decimal places. 1. Compute the amount of interest costs capitalized each yean: Caplialized interest, 2019 Caplalized interest, 2020 2. If it is assumed that the production complex has an estimated life of 20 years and a residual value of 50 , compute the straight-line degreciation in 2020. 3. Since GAAP requires accrual accounting, if a compamy caphaliens interest during the construction period it wit report income than if it had not capitalire interest, in future periods, the same company will report income than if it had not capitalized interest