X Co. is constructing a new assembly plant. A 12% construction loan for $1 million is...

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• X Co. is constructing a new assembly plant. A 12% construction loan for $1 million is obtained on January 1, 2021 to finance this project. X's other debt is a $3 million loan at 11% interest and a $4,800,000 loan at 9% interest, both loans outstanding for the entire year. Expenditures on this project during the year are $1,200,000 on January 1, 2021 and $1,800,000 on October 1, 2021. Total Interest Expense (after adjustments for capitalized interest) is (round interest rates to two decimal places): O $192,500 O $877,987 $698,495 O $637,987 • X Co. is constructing a new assembly plant. A 12% construction loan for $1 million is obtained on January 1, 2021 to finance this project. X's other debt is a $3 million loan at 11% interest and a $4,800,000 loan at 9% interest, both loans outstanding for the entire year. Expenditures on this project during the year are $1,200,000 on January 1, 2021 and $1,800,000 on October 1, 2021. Total Interest Expense (after adjustments for capitalized interest) is (round interest rates to two decimal places): O $192,500 O $877,987 $698,495 O $637,987

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