Calculate the interest amount to be capitalized

Reference no: EM133611562

Case: Bison Corporation began constructing a new facility in 2024. The building is expected to be completed on October 1, 2024. 2024 payments to the contractor are $200,000 on January 4, $300,000 on April 1, $350,000 on July 1 and $120,000 on September 1. Bison has secured a loan of $500,000 at 5% interest on January 4, 2024, and Bison has no other debt outstanding.

Required: Calculate the interest amount to be capitalized.

Reference no: EM133611562

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