Question: On January 1 , 2 0 2 4 , a company began construction of an automated cattle feeder system. The system was finished and ready

On January 1,2024, a company began construction of an automated cattle feeder system. The system was finished and ready for use on September 30,2025. Expenditures on the project were as follows:
January 1,2024 $ 225,000
September 1,2024 $ 330,000
December 31,2024 $ 330,000
March 31,2025 $ 330,000
September 30,2025 $ 225,000
The company borrowed $760,000 on a construction loan at 11% interest on January 1,2024. This loan was outstanding throughout the construction period. The company had $4,550,000 in 8% bonds payable outstanding in 2024 and 2025.
Interest (using the specific interest method) capitalized for 2024 was:
Multiple Choice
$60,850.
$36,850.
Correct
$48,850.
$42,850.

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