9)

On January 1, 2018, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2019. The only interest-bearing debt the company had outstanding during 2018 was long-term bonds with a book value of $10,900,000 and an effective interest rate of 7%. Construction expenditures incurred during 2018 were as follows:

January 1	$	590,000
March 1		654,000
July 31		534,000
September 30		690,000
December 31		390,000

Required: Calculate the amount of interest capitalized for 2018.

Date	Expenditure		Weight		Average
1-Jan		X		=
1-Mar		X		=
31-Jul		X		=
30-Sep		X		=
31-Dec		X		=
Accumulated expenditure	$				$
	Average		Interest Rate		Capitalized Interest
Average accumulaed expenditures	$	X	%	=	$