Business, 08.03.2021 19:20 jae222

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 $2,400,000 at 6% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021: $8,000,000, 11% bonds
$2,000,000, 6% long-term note

Construction expenditures incurred during 2021 were as follows:

January 1 $980,000
March 31 1,580,000
June 30 1,256,000
September 30 980,000
December 31 780,000

Required:
Calculate the amount of interest capitalized for 2021 using the specific interest method.

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