Interest During Construction

Jones Company is constructing a production complex that qualifies for interest capitalization. The following information is available:

Capitalization period: January 1, 2013, to June 30, 2014

Expenditures on project:

2013:
	January 1	$ 468,000
	May 1	408,000
	October 1	528,000
2014:
	March 1	1,308,000
	June 30	528,000

Amounts borrowed and outstanding: $1,308,000 million borrowed at 12%, specifically for the project $5,232,000 million borrowed on July 1, 2012, at 14% $12,560,000 million borrowed on January 1, 2008, at 8%

For parts 1 and 2 below, if required, round your final answer to the nearest dollar.

1) Compute the amount of interest costs capitalized each year.

Capitalized interest, 2013
Capitalized interest, 2014 2)If it is assumed that the production complex has an estimated life of 20 years and a residual value of zero, compute the straight-line depreciation in 2014.