On January 1 2021 The Highlands Company Began Construction On A New Manufacturing Facility For Its Own Use The Buildi 1 (89.24 KiB) Viewed 11 times
On January 1 2021 The Highlands Company Began Construction On A New Manufacturing Facility For Its Own Use The Buildi 2 (99.19 KiB) Viewed 11 times
On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The company borrowed $1,700,000 at 7% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021: $7,000,000, 12% bonds $3,000,000, 7% long-term note Construction expenditures incurred during 2021 were as follows: January 1 March 31 June 30 September 30 December 31 $ 740,000 1,340,000 968,000 740,000 540,000
Required: Calculate the amount of interest capitalized for 2021 using the specific interest method. (Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 should be entered as 12.3%).) Date January 1 March 31 June 30 September 30 December 31 Accumulated expenditure Average accumulated expenditures Expenditure Amount X X X X X X X Weight Interest Rate % = || = = = = = = Average Capitalized Interest
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