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A company constructs a building for its own use. Construction began on January 1 and ended on December 3 0 . The expenditures for construction

A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1,$500,000; March 31,$600,000; June 30,$400,000; October 30, $600,000. The company arranged a 7% loan on January 1 for $700,000. Assume the $700,000 loan is not specifically tied to the construction of the building. The company's other borrowings, outstanding for the whole year, consisted of a $3 million loan and a $5 million note with interest rates of 8% and 6%, respectively.
Assuming the company uses the weighted-average method, calculate the amount of interest capitalized for the year. Note: Enter your answers in whole dollars and not in millions. Do not round intermediate calculations. Round your percentage answers to 2 decimal places (i.e.0.1234 should be entered as 12.34%).
\table[[Date,Expenditure,,Weight,,,verage],[January 1,500,000,x,1212,=,$,500,000],[March 31,600,000,x,912,=,,450,000],[June 30,400,000,x,612,=,,200,000],[October 30,600,000,x,212,=,,100,000],[Accumulated expenditures,$,2,100,000,,,,$,1,250,000
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