(5 points) A building was constructed last year for Agro Co. for use as a production facility. Construction began on January 1 and was completed on December 31. The payments to the contractor were as follows. Date Payment 1/1 $500,000 4/30 600,000 10/1 1,000,000 11/1 600,000 To finance construction of the building, a $1,100,000, 10.5% construction loan was taken out on January 1. The loan was repaid on December 31. The firm had two sources of general debt: $800,000 note payable, 9% annual interest, and $1,200,000 par value bonds, 12% annual interest. Determine the amount of interest to be capitalized.

(a) Determine the depreciation expense for 2020 . 3. (5 points) A building was constructed last year for Agro Co. for use as a production facility. Construction began on January 1 and was completed on December 31 . The payments to the contractor were as follows. To finance construction of the building, a $1,100,000,10.5% construction loan was taken out on January 1 . The loan was repaid on December 31 . The firm had two sources of general debt: $800,000 note payable, 9% annual interest, and $1,200,000 par value bonds, 12% annual interest. Determine the amount of interest to be capitalized