Pharoah, Inc. has a fiscal year ending June 30. On July 1, 2025, Pharoah borrowed $5,100,000 at
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Pharoah, Inc. has a fiscal year ending June 30. On July 1, 2025, Pharoah borrowed $5,100,000 at 10% to finance construction of its own building. Repayments of the loan are to commence the month following completion of the building. During the year ended June 30, 2026, expenditures for the partially completed structure totaled $1,530,000. These expenditures were incurred evenly throughout the year. Interest earned on the unexpended portion of the loan amounted to $123,420 for the year. How much should be shown as capitalized interest on Pharoahs financial statements at June 30, 2026?
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