40.

On January 1, 2021, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The only interest-bearing debt the company had outstanding during 2021 was long-term bonds with a book value of $10,300,000 and an effective interest rate of 8%. Construction expenditures incurred during 2021 were as follows: January 1 March 1 July 31 September 30 December 31 $530,000 618,000 498,000 630,000 330,000 Required: Calculate the amount of interest capitalized for 2021. Expenditure Weight Average Date January 1 March 1 July 31 September 30 December 31 Accumulated expenditure Average Interest Rate % Capitalized Interest Average accumulated expenditures x