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What amount should tolvin report as capitalized interest

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Question - On January 1, 2016, Basker Research signed a contract to have Bob's Builders construct a laboratory building at a cost of $20,000,000. It was estimated that it would take four years to complete the project. Also on January 1, 2017, to finance the construction cost, Tolvin borrowed $20,000,000 payable in five annual installments of $4,000,000 plus interest at the rate of 7%. During 2017, Tolvin made the following construction-related expenditures:

Date

Amount

3/1

$600,000

7/1

$700,000

11/1

$900,000

Required - What amount should Tolvin report as capitalized interest at December 31, 2017?

Reference no: EM133093164

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