Reference no: EM133034034

Question - Hawkins Corporation began construction of a motel on March 31, 2021. The project was completed on April 30, 2022. No new loans were required to fund construction. Hawkins does have the following two interest-bearing liabilities that were outstanding throughout the construction period:

$4,200,000, 6% note

$17,480,000, 10% bonds

Construction expenditures incurred were as follows:

March 31, 2021 $4,180,000

June 30, 2021 $6,180,000

November 30, 2021 $1,836,000

February 28, 2022 $3,180,000

The company's fiscal year-end is December 31.

Required - Calculate the amount of interest capitalized for 2021 and 2022.