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A company constructs a building for its own use. Construction began on January 1 and ended on December The expenditures for construction were as follows:

A company constructs a building for its own use. Construction began on January 1 and ended on December
The expenditures for construction were as follows: January 1, $590,000; March 31, $690,000; June 30,
$490,000; October 30,$870,000. The company arranged a 8% loan on January 1 for $880,000. Assume
the $880,000 loan is not specifically tied to the construction of the building. The company's other
borrowings, outstanding for the whole year, consisted of a $4 million loan and a $6 million note with interest
rates of 12% and 7%, 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%).
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