B constructed a warehouse for its own use. B started construction on January 1 and completed construction on December 31. Construction expenditures were as follows:

• $750,000 on January 1
• $840,000 on March 31
• $360,000 on May 1
• $720,000 on July 31
• $240,000 on September 1
• $120,000 on December 31

During the entire year B had the following outstanding notes payable; none of the notes were issued to specifically fund the warehouse construction :

• A 3.00%, 5-year $4,000,000 note payable
• A 5.00%, 15-year $3,000,000 note payable
• A 4.20%, 10-year $2,000,000 note payable
• A 2.50%, 4-year $15,000,000 note payable

1. What were Bs total interest costs for the year?

$4,000,000 * 3% = $120,000

$3,000,000 * 5% = $150,000

$2,000,000 * 4.20% = $84,000

$15,000,000 * 2.5% = $375,000

$24,000,000 =$729,000

2. What amount of interest should B capitalize on this construction project?

$729,000 / $24,000,000 = 3.04%

3. What was Bs interest expense for the year?

$1,485,000 * 3.04% = $45,144

verify my answers please. answers in bold.