Question: On December 3 1 , 2 0 2 4 , Marigold Inc. borrowed $ 3 , 2 4 0 , 0 0 0 at

On December 31,2024, Marigold Inc. borrowed \$3,240,000 at 13\% payable annually to finance the construction of a new 2025, the company made the following expenditures related to this building: March 1,\$388,800; June 1,\$648,000; July 1\(\$ 1,620,000\); December 1,\$1,620,000. The building was completed in February 2026. Additional information is provided a
1. Other debt outstanding:
10-year, 14\% bond, December 31,2018, interest payable annually
\$4,320,000
6-year, \(11\%\) note, dated December 31,2022, interest payable annually
1,728,000
2. March 1,2025, expenditure included land costs of \$162,000.
3. Interest revenue of \(\$ 52,920\) earned in 2025.
(a)
Determine the amount of interest to be capitalized in 2025 in relation to the construction of the building.
The amount of interest
On December 3 1 , 2 0 2 4 , Marigold Inc.

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