A. Interest During Construction Hart began construction of a new building on July 1,2020. On the day construction was started, the land was appraised at $350,000. It had been purchased 2 years carlier for $200,000. By Dec, 31,2020 it had spent $600,000 on construction and correctly paid and capitalized interest in the amount of $40,000. The following added expenditures were made in 2021 prior to completion of the building on September 1,2021