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Business, 02.01.2020 23:31 christinemine556

On january 1, 2021, the shagri company began construction on a new manufacturing facility for its own use. the building was completed in 2022. the only interest-bearing debt the company had outstanding during 2021 was long-term bonds with a book value of $10,000,000 and an effective interest rate of 8%. construction expenditures incurred during 2021 were as follows: january 1

$500,000

march 1

600,000

july 31

480,000

september 30

600,000

december 31

300,000

required:

calculate the amount of interest capitalized for 2021.

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Answers: 3

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