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1. The Company is constructing a building. Construction began on 2/1 and was completed on 12/31. Expenditures were $1,800,000 on 3/1, $1,200,000 on 6/1, and

1. The Company is constructing a building. Construction began on 2/1 and was completed on 12/31. Expenditures were $1,800,000 on 3/1, $1,200,000 on 6/1, and $3,000,000 on 12/31.

The Company borrowed $1,000,000 on 3/1 on a 5-year 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10% 5-year $2,000,000 note payable and an 11% 4-year $3,500,000 note payable. Compute the capitalizable interest.

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