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Calculate the amount of interest capitalized for hawkins co

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Reference no: EM132939133

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:

Problem 1: Calculate the amount of interest capitalized for 2021 and 2022.

Reference no: EM132939133

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