Calculate the amount of interest capitalized

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Question - 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 $11,600,000 and an effective interest rate of 11%. Construction expenditures incurred during 2021 were as follows:

January 1

$660,000

March 1

696,000

July 31

576,000

September 30

760,000

December 31

460,000

Required - Calculate the amount of interest capitalized for 2021.

Reference no: EM132480688

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