Answer is complete but not entirely correct. Date January 1 March 31 June 30 October 30 Accumulated expenditures Expenditure $ 630,000 730,000 530,000 990,000 $ 2,880,000 Weight 12/12 = 9/12 - 6/12E 2/12 - + Average $ 630,000 547,500 265,000 165,000 $ 1,607,500 Average Interest Rate Capitalized Interest Average accumulated expenditures Construction loan Other loans (not construction) $ 1,607,500 960,000 137,665 8.00 9.40 % % 76,800 12,941 89,741 $ 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, $630,000; March 31, $730,000; June 30, $530,000; October 30, $990,000. To help finance construction, the company arranged a 8% construction loan on January 1 for $960,000. 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 13% and 7%, respectively. Assuming the company uses the specific interest method, calculate the amount of interest capitalized for the year. (Do not round Intermediate calculations. Round your percentage answers to 2 decimal places the 0.1234 should be entered as 12.34%) Answer is complete but not entirely correct. January 1 March 31 June 30 Expenditure 630,000 730,000 530,000 990,000 $ 2,880,000 Weight 12/12 9/12 6/12 2/12 - - - - Average 630,000 547,500 265,000 165,000 $ 1,607,500 October 30 Accumulated expenditures Average Interest Rate Capitalized Interest $ Average accumulated expenditures Construction loan Other loans (not construction) 1.607500 960,000 137,665 76 800 12.941